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DTN Midday Grain Comments 11/29 10:46
Soybean Futures Higher at Midday; Corn, Wheat Mixed
Corn futures are narrowly mixed at midday Tuesday; soybean futures are 6 to
7 cents higher; wheat futures are flat to 5 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are narrowly mixed at midday Tuesday; soybean futures are 6 to
7 cents higher; wheat futures are flat to 5 cents higher. The U.S. stock market
is weaker with the DOW off 170 points. The U.S. Dollar Index is 10 points
higher. Interest rate products are weaker. Energies are firmer with crude up
.80 and natural gas up .15. Livestock trade is firmer. Precious metals are
firmer with gold up 9.00.
CORN:
Corn futures are narrowly mixed at midday with trade continuing to chop
around rangebound with firmer spreads ahead of the December contract going into
delivery. The daily export wire will be watched to see if sales pick up again
as we fade to the lower end of the range and come out of the holiday break with
nothing to start the week. Ethanol margins remain rangebound with corn values
and driving demand expected to slow further until closer to Christmas travel.
Fall fertilizer should be able to make better progress short term as temps
fluctuate near term. Basis has remained steady as transportation issues get
worked on with the West starting to soften a bit in spots. On the March chart,
trade is solidly above the lower Bollinger Band at $6.50 with the fresh low at
$6.54 1/2 just above that and the 20-day moving average just above current
action at $6.72.
SOYBEANS:
Soybean futures are 6 to 7 cents higher with trade working on consolidating
the gains seen Monday as the energy rebound put life back into soybeans, while
South American weather remains mixed short term. Meal is $2.00 to $3.00 lower,
and oil is 25 to 35 points lower. Basis has held together well with little
change in recent days. The daily export wire has been limited in recent days
with China demand likely to be an ongoing concern with the continued shutdowns
and unrest going forward with no export notices hitting the wire Tuesday. On
the January chart, trade is working just above the 20-day moving average at
$14.42 with the Upper Bollinger Band above current action at $14.68, as well as
the fresh high at $14.69, and further support the lower Bollinger Band at
$14.17.
WHEAT:
Wheat futures are flat to 5 cents higher with trade still struggling to find
positive momentum ahead of delivery with Chicago and Minneapolis action leading
at midday as we try to find a positive close. The dollar fading from the highs
should add some support if we can remain at the lower end of the range. The
Plains look to remain mostly dry short term with cooler and wetter potential
the second week. Southern Hemisphere harvest will be moving forward soon with
quality issues in Australia and drought losses in Argentina. Matif wheat is
trying to sustain momentum as well with slightly firmer action overnight. On
the chart, KC March action has faded well below the 20-day moving average at
$9.33 and the lower Bollinger band at $8.90 is further support with the fresh
low at $8.84 scored Tuesday morning just below that.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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