Patti Uhrich

Sep 14, 2021

Highlights

The grain and oilseed complex saw mixed trade today in a choppy session.  Wheat was the leader pulling corn along with it.  

  • Tropical storm Nicholas slowed over the Houston, TX area dumping more than a foot of rain.
  • The U.S. forecasts are very warm and dry the next 10 days for central regions.
  • South America weather remains dry as they begin their planting season.
  • The Dow is lower 34,554.66, dn 314.97 as of 2:47 p.m. CDT.
  • The energy markets are mixed with October crude at 70.37. 
  • US$ is 92.655, S&P futures are 30.50 pts lower at 4438.50 pts, gold is $10.75 higher at $803.00 per ounce.

Corn

The corn market closed higher, following wheat and a weaker dollar.

  • Close: Dec. 21 at $5.20 ¼ up 7 cents; March 22 at 5.28 ¼ up 6 ¼; Dec. 22 at $5.02 up 3 ½.
  • Some early corn yields have been “ok” in IL but good in Ohio and Indiana.
  • Hearing some chatter about lower test weights in early harvested corn in IL and Southern Minnesota.
  • The national average basis for corn was 4 cents weaker.
  • Estimated fund activity +5500 contracts.
  • Dec. Corn support at 5.06 ¼. Resistance at 5.24.
  • Spreads: Z/H 8 cent carry, Z/K 13 cent carry, Z/N 12 ¼ carry.

Oilseeds

The soybean market closed slightly lower.  

  • Close: Nov. 21 at $12.82 ½ dn 2 ¼; Jan 22 at 12.91 ¾ dn 1 ¾; Nov. 22 at $12.56 ¼ dn 1 ¾.
  • Soyoil - October at 56.68 slightly higher; Soybean Meal - October at 338.0 dn 3.50.
  • Some early soybean yields have been lower than expected.
  • The national average basis for soybeans was 2 cents weaker.
  • Estimated fund buying in beans -3000 contracts, Soymeal -2500 contracts, and Soyoil +4500 contracts.
  • Nov. SB support at 12.82 ½. Resistance at 13.00.  Contract high at 14.80.
  • Spreads: X/F 9 ¼ cent carry, X/H 13 ¾ carry, X/K 20 ¼ carry.

Wheat

Wheat was higher on lower Canadian and European wheat production estimates. 

  • December close: Mpls - $8.93 ½ up 12 ¼; KC - $7.01 ¾ up 15 ½; Chi - $7.00 ¾ up 13 ¾.
  • There is some concern about dryness in Australia leading to lower wheat and canola yields.
  • Estimated fund activity in wheat showed +7000 contracts.
  • December Chi wheat support at 6.85 ¼. Resistance at 7.12 ½. Contract high at 7.86 ½.
  • December Mpls wheat support 8.76. Resistance 8.88 ½. Contract high 9.37 ½.
  • December KC wheat support 6.90. Resistance 7.03. Contract high is 7.69.
  • Spreads: Mpls Z/H 11 inverse, Kansas City Z/H 8 ¾ carry, Chicago Z/H 10 ½ carry.