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DTN Midday Grain Comments 12/04 10:51
Corn and Wheat Futures Higher Midday Monday
Corn trade is 2 to 3 cents higher; beans are narrowly mixed and wheat trade
is 8 to 21 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn trade is 2 to 3 cents higher; beans are narrowly mixed and wheat trade
is 8 to 21 cents higher. The U.S. stock market is weaker with the S&P 42 points
lower. The U.S. Dollar Index is 0.50 higher. Interest rate products are weaker.
Energies are flat to weaker with crude off $0.35 and natural gas off $0.14.
Livestock trade is mixed. Precious metals are sharply lower with gold off
$45.00.
CORN:
Corn trade is 2 to 3 cents higher at midday Monday with trade edging through
nearby resistance levels at midday with flat to firmer spread action. Ethanol
margins are narrowing a bit with corn bouncing and unleaded remaining near the
low end of the range. Basis should remain steady short term with the roll to
March complete. The daily wire showed 267,044 metric tons sold to Mexico with
weekly export inspections stronger at 1.158 million metric tons. 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 we are just above with the fresh low at $4.70 1/2 as support.
SOYBEANS:
Soybean trade is narrowly mixed at midday with trade firming a bit off the
early lows as we remain at the lower end of the range with product action
trying to find footing as we watch for further weather developments in South
America. Meal is $1.00 to $2.00 higher and oil is 0.30 cent to 0.40 cent
higher. The daily wire remained active with 183,000 metric tons of meal sold to
Philippines with weekly export inspections disappointing at 1.109 million
metric tons. 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 $13.54, with the lower Bollinger Band at $13.14 as support.
WHEAT:
Wheat trade is 8 to 21 cents higher with Chicago leading action after
pushing through nearby resistance last week with China securing 440,000 metric
tons of soft wheat on the daily wire as trade consolidates further above nearby
resistance. The Plains should see mostly seasonal to slightly warmer weather in
the short term. World weather has shown little change in recent days with
little concern in the Northern Hemisphere for now. Matif wheat is solidly
higher as well. Weekly export inspections were soft at 187,955 metric tons. On
the KC March Chart, support is at the 20-day moving average at $6.37 with the
upper Bollinger Band at $6.72 as resistance as we trade 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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