DTN Midday Grain Comments 11/24 11:01
Corn, Soybeans Lower at Midday
Corn is 2 to 3 cents lower, soybeans are 5 to 6 cents lower and wheat is 1
to 6 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 425 points. The dollar index
is 25 points lower. Interest rate products are weaker. Energies are firmer with
crude up $2.00. Livestock trade is mixed. Precious metals are mixed with gold
Corn trade is 2 to 3 cents lower at midday with flat spread action and broad
selling early. The daily wire was quiet on the export front Tuesday. Ethanol
remains within the recent range with a focus continuing on short-term demand
and a boost from strength in the energy complex. Basis remains generally
strong. On the December contract, support is the 20-day at $4.12 with the lower
Bollinger band at $3.94 as the next level down with the fresh high scored at
$4.29 3/4 scored Monday with the upper Bollinger band at $4.31 above that.
Soybeans trade is 5 to 6 cents lower at midday with little change to weather
patterns and some talk of cancelations by Chinese crushers due to a poor margin
environment with trade well off the lows at midday. Meal is flat to $1.00
higher, and oil was 0.40 to 0.50 cent lower. The daily wire has remained quiet
for soybeans as well. South America has some dry pockets building with northern
Brazil looking to see more moisture short term, with southern Brazil one-third
very dry the next week and wetter action expected in Argentina after recent
dryness. Basis remains strong as we continue to work to max out our logistics
capacity to ship the needed export bushels with freight issues remaining in
play. The January chart has resistance at the fresh high at the fresh high at
$12.00 scored Monday, with the upper Bollinger band at $12.22, with support the
20-day at $11.25.
Wheat trade is 1 to 6 cents higher with range-bound action continuing with
some rain on the Plains. The dollar has turned lower again adding support.
World export tenders continue to go to Black Sea origin for the most part, with
little change in overall conditions there. The western plains look to see some
potential improvement with the last progress report showing good to excellent
off 3% to 43%, and 21% poor to very poor, up 3%. KC is at 47-cent discount to
Chicago with spreads remaining rangebound, with Minneapolis at -53 cents. KC
December chart resistance is the 20-day at $5.52, which we are just above
overnight, and support is the lower Bollinger band at $5.40.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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