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DTN Midday Grain Comments 12/01 10:47
Corn, Soybeans Higher Midday Wednesday
Corn trade is 5 to 6 cents higher, beans are 8 to 10 cents higher and wheat
is 5 cents lower to 3 cent higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is firmer with the Dow up 470 points. The U.S. Dollar
Index is 0.10 higher. Interest rate products are weaker. Energies are mixed
with crude up $2.20. Livestock trade is mixed. Precious metals are mixed with
gold up $10.00.
CORN:
Corn trade is 5 to 6 cents higher at midday Wednesday with firmer spread
action as trade tries to find footing after the early week selling and better
broad commodity action Wednesday morning. Ethanol margins have narrowed with
the energy move lower with the weekly report showing production down 44,000
barrels per day, with stocks 137,000 barrels higher. Basis should remain steady
to firmer short term with fall field work likely to make good progress where
supplies are available. USDA announced 150,000 metric tons sold to Colombia. On
the March contract we have resistance at the 20-day moving average at $5.77,
which we fell through Tuesday, then the lower Bollinger Band at $5.59 as
support.
SOYBEANS:
Soybean trade is 8 to 10 cents higher at midday with firmer spread action as
trade works to bounce back from the lower end of the range with better product
action and eyes toward further exports. Meal is $5.00 to $6.00 higher and oil
is flat to 0.10 cent higher. South America looks to continue short-term
progress with issues remaining limited for now while the extended forecast
remaining mixed for crop development short term. Crush margins remain solid but
further product weakness would limit enthusiasm. The export wire was quiet to
Wednesday with trade looking for more sales as South American competitiveness
improves. On the January soybean chart, we fell below the 20-day at $12.41
Monday and remain below it at midday, with further support the lower Bollinger
Band at $11.91.
WHEAT:
Wheat trade is 5 cents lower to 3 cents higher at midday with KC the laggard
so far as we look to consolidate after the recent losses carried action back to
support levels with fresh bullish news more limited this week. The dollar is
just above 96 points continuing to hold the upper end of the range. Weather in
the Plains looks little changed short term with longer-term dry concerns for
the Southern Plains heading toward dormancy. Spring wheat is softer versus
Chicago moving the premium to 2.20 cents on the March, with KC at a 27-cent
premium in weaker action so far. KC March chart resistance is at the 20-day at
$8.29, which we faded through Tuesday with the recent low at $8.15 as the first
level of support.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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