Grain prices mixed at trading close | Wednesday, September 27, 2023

December corn futures were able to close nearly 5¢ higher on the day. The close today is only the second close above the 20-day moving average since July 28. November soybeans traded both sides of steady today in a 20¢ trading range. November settled nearly unchanged as the bulls were unable to break above the 10-day moving average at the high today.  

All three classes of wheat ended the day in negative territory. CBOT wheat was down 9¢, KC wheat was down 16¢ and spring wheat was down 16¢. The 10 and 20-day moving averages on the wheat charts continue to be stiff resistance.

Livestock futures closed mixed today. November feeder cattle were down $2 dollars on the day, while October Live Cattle settled the day 10¢ higher. Lean Hogs were mostly higher with both October and December contracts closing nearly 50¢ higher on the day.

The U.S. dollar pushed above resistance yesterday and was able to continue that strength today. On the Dollar index continuation chart, futures are now at the highest level since November 30, 2022. The next technical upside target sits at 107.06, which is the 50% retracement of the September 2022 high and the recent July low. If that level is breached, then we could see a run toward the 109 area.  

Crude oil posted a strong rally today of more than $3. The strength came after weekly inventory data showed a much larger draw on U.S. stocks versus expectations. Traders are concerned that U.S. supplies continue to show a downward trend. Continued strength above $93.74 would likely give the bulls enough momentum to potentially take a run at the next technical target of $97.66.

Published: 2:56 p.m. CDT

About the Author: Bob Linneman is a commodities broker with Kluis Commodity Advisors. Linneman grew up on a diverse farm in eastern South Dakota. Between milking cows, managing a beef herd, and farming various crops, he experienced many aspects of agriculture firsthand. After graduating from North Dakota State University with a degree in business, he moved to Hawaii with his wife. There he was an associate portfolio manager for a fixed income firm that managed $2 billion in assets. After nearly two years in Hawaii, he moved back to the Midwest and began his career in commodities. Linneman is licensed as a Series 3 and Series 30 commodity broker.

Soybeans up 6¢ at midday: 12:15 p.m. CDT

December corn is currently up 3¢. 

November soybeans are up 6¢. 

Wheat futures are down 1¢ to 3¢.

The corn and soybean markets continue higher while wheat is now mostly lower in a choppy day of trade. The key today or any day this week is for December corn is to get a close above $4.86, and for today or the rest of this week watch if November soybeans can close above $13.20. 

For the reports on Friday the most interesting number will be what the USDA does with corn stocks. With much smaller number of livestock on feed, will feed usage go down and create larger ending stocks? For soybeans, many traders think last year’s soybean crop was understated, and that could result in larger than expected soybean inventories.

November feeder cattle are up 10¢.

October live cattle are up 57¢. 

October lean hogs are up 70¢.

In the outside markets. The stock market has traded on both sides with the Dow now up 10 points, The U.S. dollar is down 29 points today, while crude oil continues higher and is now up $2 per barrel.  

Published: 12:15 p.m. CDT

Soybeans start the day up 7¢: 9:20 a.m. CDT

December corn is currently up 4¢.

November soybeans are up 7¢.

Wheat futures are up 1¢ to 2¢.

Livestock futures are higher today. November feeder cattle are up 62 points, October live cattle are up 97¢, October lean hogs are up 70¢. 

It is a low volume trade ahead of the USDA Reports that will be released at 11 a.m. CDT Friday. 

Around the world in the stock markets: The stock market in China is down 0.2%, and in Japan the stock market is down 0.3%. European stocks are down 0.3%.

In the outside markets the U.S. Dollar Index is up 0.23 points at 106.46. Crude oil started higher again posting gains of $1.80 per barrel at $92.20. The Dow after trading higher early today is now down 25 points.

Published: 9:20 a.m. CDT

For a free trial of The Kluis Report, including three times a day market updates and the Saturday newsletter, visit kluiscommodities.com, call 888-345-2855, or email info@kluiscommodityadvisors.com.

About the Author: Al Kluis has been a commodity advisor and broker since 1976. Kluis is an introducing broker with Wedbush Futures and writes a column, Your Profit, which appears in every issue of Successful Farming magazine. Kluis has published two books on commodities trading and is commonly quoted in major publications including the Wall Street Journal. He is also a featured speaker at commodity conferences nationwide. Kluis is a frequent market analyst for the Linder Farm Radio News Network. A Minnesota farm boy, Kluis was awarded his degree in ag economics from the University of Minnesota in 1974, after which he was executive director of the Minnesota Soybean Association before entering the markets full-time. His family still farms in southwest Minnesota, and Kluis enjoys helping with fieldwork when the markets allow.

Editor's Note: The risk of loss in trading futures and/or options is substantial, and each investor and/or trader must consider whether this is a suitable investment. Past performance – whether actual or indicated by simulated historical tests of strategies – is not indicative of future results. Trading advice reflects good-faith judgment at a specific time and is subject to change without notice. There is no guarantee the advice given will result in profitable trades.