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DTN Midday Grain Comments     12/09 10:58

   Soybeans Sharply Higher at Midday; Corn, Wheat Mixed 

   Corn is flat to 1 cent higher, soybeans are 11 to 13 cents higher and wheat 
is 2 cents lower to 3 cents higher.  

By David Fiala
DTN Contributing Analyst

 General Comments

   

   

   The U.S. stock market is weaker with the Dow down 55. The dollar index is 10 
lower. Interest rate products are mixed. Energies are narrowly mixed with crude 
$0.10 lower. Livestock trade is mostly lower. Precious metals are mostly higher 
with gold up $1.

   CORN

   Corn trade is narrowly mixed with trade working sideways and unable to grasp 
spillover support from soybeans so far. Ethanol margins have remained steady 
with corn and ethanol futures sideways and unleaded at the upper end of the 
range overall. Basis has held up well with some strength showing up at 
processors again. Weekly export inspections remain soft at 481,097 metric tons, 
and harvest is expected to be around 93% complete. On the March contract, 
support is the lower Bollinger band at $3.73, which we have held just above, 
with resistance the 20-day at $3.80. 

   SOYBEANS

   Soybeans are 11 to 13 cents higher with support from short-covering and 
positive trade reports spurring buying just before the day session. Meal is 
$1.00 to $2.00 higher, and oil was 45 to 55 points higher. The real remains 
cheap vs. the dollar with Brazilian weather still in good shape. Argentina 
weather is more mixed and coming off a dry week. Bean basis has moved to a more 
sideways trend short term with the futures rally likely to soften basis in some 
areas this week. Weekly export inspections remained solid at 1.327 million 
metric tons. January chart support is the lower Bollinger band at $8.63, which 
we are finally pulling away from. Resistance is well above the market at $8.97, 
where the 20-day is and we are above at midday. The upper Bollinger band is at 
$9.29.

   WHEAT

   Wheat trade is 3 cents lower to 3 cents higher with Minneapolis leading at 
midday with trade back to the lower end of the recent range. The Chicago/KC 
March spread is back to 95 cents near the highs. Chicago also holding a 7-cent 
premium to Minneapolis, which has narrowed to start the week. The dollar 
remains range bound. Export business has been quiet so far this week. The 
forecast dries the Plains back out short term, with little change to world 
conditions north and south this week. The weekly export inspections were range 
bound at 313,810 metric tons. The March KC chart support is the lower Bollinger 
band at $4.23, and resistance the 20-day at $4.35.

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser. 
He can be reached at dfiala@futuresone.com 
Follow him on Twitter @davidfiala


(AG)

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