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DTN Closing Grain Comments 11/04 13:52
Soybeans Test $12.00 at Midweek, Wheat Unable to Sustain Early Strength
Row crop futures were mixed on Wednesday, with corn reversing from early
lows and moving higher, though prices would eventually fade from morning highs
by the close. Meanwhile, soybeans remained under pressure after StoneX released
their latest yield survey results on Tuesday, forecasting a record shattering
55 bushels per acre (bpa) average output this fall across the U.S. However,
despite the moderate losses, it was reassuring to see January futures respond
with a bounce from daily lows, and for the time being, reject a move below
$12.00. Wheat futures also spent much of the morning higher, supported by a
drop in the U.S. Dollar Index, though wheat prices would eventually turn lower
once again as the dollar rebounded. The currency swing was closely tied to
energy prices, with crude oil falling another $8-$9 on Wednesday in response to
a sweeping victory for Democratic candidates in Tuesday's midterm elections,
with the Democratic party retaking both the House and Senate. The market is
seemingly pricing in an increased chance now that the Democratic controlled
Congress will move to force an end to the U.S. and Iran war. With the elections
now passed, the markets will likely see increased volatility as the next stages
in both the Black Sea and Middle East wars are imminent.
Rhett Montgomery
DTN Lead Analyst
GENERAL COMMENTS:
December corn closed up 1 3/4 cents and March corn was up 2 cents. January
soybeans closed down 11 3/4 cents and March soybeans were down 10 1/2 cents.
December KC wheat closed down 3 1/2 cents, December Chicago wheat was down 1
1/4 cents, December MIAX Minneapolis wheat was down 2 3/4 cents.
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