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DTN Midday Grain Comments 11/28 10:46
Corn Lower, Beans Higher and Wheat Mixed at Midday Tuesday
Corn trade is 7 to 8 cents lower; beans are 3 to 5 cents lower and wheat
trade is 10 to 18 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is firmer with the S&P 15 points higher. The dollar
index is 40 points lower. Interest rate products are firmer. Energies are
firmer with crude up $2 and natural gas unchanged. Livestock trade is sharply
higher. Precious metals are firmer with gold up $25.
CORN:
Corn trade is 1 to 4 cents lower with trade working to consolidate near the
fresh lows scored yesterday as we prepare for the December contract to go into
delivery. Ethanol margins will likely continue to be range-bound short term.
Basis should remain steady for the most part as we transition to the March bids.
The daily wire continued to be quiet. South American weather should see
little change in the immediate term from the recent pattern. Harvest was rated
at 96% vs. 95% on average. On the December chart, the 20-day at $4.72 is nearby
resistance which we failed from last week before fading again with the $4.50
area the next level that we have held so far.
SOYBEANS:
Soybean trade is 14 to 16 cents higher at midday with trade working to build
support at the lower end of the recent range as well with broad product
strength overnight and little change to the immediate forecasts for South
America. Meal is $1 to $2 higher and oil is 140 to 160 points higher.
The daily wire saw 123,000 metric tons sold to unknown. Basis should remain
flat short term. The South American weather pattern will be watched for
sustained moisture into December as we get deeper into the growing season with
the extended forecast looking more promising. The January soybean chart has
resistance at the 20-day average at $13.52 with the lower Bollinger Band at
$13.03 as support.
WHEAT:
Wheat trade is flat to 9 cents higher with trade seeing light short covering
as we remain oversold near the fresh lows scored yesterday with KC action
leading trade. The plains snow cover should fade with warmer temps until the
end of the week. Weekly crop progress showed 91% emerged vs. 89% on average and
50% good to excellent, up 2% from last week, and 17% poor to very poor. World
weather has shown little change in recent days with little concern in the
Northern Hemisphere for now.
Matif wheat is a bit firmer as well. On the KC December chart, support is at
the fresh low of $5.88 1/4 with the 20-day moving average at $6.29 as
resistance.
David Fiala can be reached at dfiala@futuresone.com.
Follow him on X, formerly Twitter, @davidfiala.
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