DTN Midday Grain Comments 11/22 11:04
Grains Mixed at Midday
Wheat leads mixed midday trade.
By David Fiala
DTN Contributing Analyst
The U.S. stock market is mixed with the Dow up 60. The dollar index is 25
higher. Interest rate products are mixed. Energies are mixed with crude $0.90
lower. Livestock trade is mostly lower. Precious metals are mixed with gold up
Corn trade is 1 to 2 cents higher at midday with light buying during the day
session. Ethanol margins remain stable with corn and ethanol futures slightly
firmer. Basis has held up well with the slow pace of harvest so far with more
open weather short term. South America should see areas of improvement as
planting progresses, especially in Brazil with no major issues on the horizon
for now. On the December contract, support is the $3.65 3/4 lows from Wednesday
along with the lower Bollinger Band at $3.62, with resistance the 20-day at
$3.77, along with heavily oversold conditions.
Soybeans are 1 to 2 cents lower with trade dipping below $9.00 with the
usual overnight short covering evaporating quicker than usual for the week and
weaker trade continuing through the day session. Meal is $1.00 to $2.00 lower,
and oil is 25 to 35 points higher. The ral has turned more sideways after the
recent break. Bean basis has moved to a more sideways trend short term with
pockets of firmness showing up at crushers. On the January chart support is the
lower Bollinger Band at $8.98, which we are just above with resistance well
above the market at $9.22 where the 20-day moving average, along with oversold
Wheat trade is flat to 8 cents higher at with trade trying to return to
positive action after the early-week gains faded on Thursday with Chicago
taking the lead this a.m. The Chicago/Kansas City December spread is 90 cents
with choppy action this week, Chicago also holding a 21 cent premium to
Minneapolis. The weaker dollar could help more if sustained vs. world values
this week with mixed action today. Export business remains focused on the Black
Sea with feed competitiveness fading. The extended forecast hints at some
relief for the drier western areas with late-planted wheat struggling to
emerged. The December Kansas City chart support is the lower Bollinger Band at
$4.13, with resistance the 20-day at 4.23 which we are just above at midday and
then the recent highs at $4.38.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
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