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DTN Midday Grain Comments 12/05 10:46
Corn and Wheat Futures Higher, Beans Lower Midday Tuesday
Corn trade is 1 to 2 cents higher; beans are 4 to 6 cents lower and wheat
trade is 1 to 5 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is mixed with the S&P 4 points lower. The dollar index
is 20 points higher. Interest rate products are firmer. Energies are flat to
firmer with crude up $0.50 and natural gas up $0.06. Livestock trade is mixed.
Precious metals are lower with gold off $8.
CORN:
Corn trade is 1 to 2 cents higher at midday Tuesday in quiet action as we
continue to hang right around nearby resistance levels with little other fresh
news with action pulling back from the highs midmorning. Ethanol margins are
narrowing a bit with corn bouncing and unleaded remaining near the low end of
the range in recent days compressing blender margins. Basis should remain
steady short term.
The daily wire was quiet today after the Monday sales. South American
weather should see little change in the immediate term with the extended
forecast looking wetter. On the March chart, the 20-day at $4.85 is nearby
resistance which is we are just above overnight with the fresh low at 4.70 1/2
as support.
SOYBEANS:
Soybean trade is 4 to 6 cents lower at midday with early product strength
fading and weather premium still slipping out of the market. Meal is flat to $1
higher and oil is 90 to 100 points lower.
The daily wire was quiet today. Basis continues to drift sideways short
term. The South American weather pattern will be watched for confirmation of
the expected uptick in rain at the end of the two-week forecast. The January
soybean chart has resistance at the 20-day at $13.51, with the $13 level as
support which we are testing at midday.
WHEAT:
Wheat trade is 1 to 5 cents higher with Chicago action continuing to lead
with firmer spread action as China secured another 198,000 metric tons of soft
red wheat on the daily wire continuing the recent buying binge. The Plains
should see mostly seasonal to slightly warmer temps short term. World weather
has shown little change in recent days with little concern in the Northern
Hemisphere for now.
Matif wheat is narrowly mixed with the dollar back near the recent highs. On
the KC March Chart, support is at the 20-day moving average at $6.38 with the
Upper Bollinger Band at $6.72 as resistance as we try to consolidate the recent
rebound.
**
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**
David Fiala can be reached at dfiala@futuresone.com.
Follow him on X, formerly Twitter, @davidfiala.
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