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DTN Midday Grain Comments 12/11 10:52
Corn, Soybean, Wheat Futures All Higher at Midday
Corn futures are 1 to 2 cents higher at midday Wednesday; soybean futures
are 3 to 4 cents higher; wheat futures are 2 to 5 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 1 to 2 cents higher at midday Wednesday; soybean futures
are 3 to 4 cents higher; wheat futures are 2 to 5 cents higher. The U.S. stock
market is firmer at midday with the S&P 50 points higher. The U.S. Dollar Index
is 30 points higher. The interest rate products are weaker. Energy trade is
firmer with crude up 1.10 with natural gas .20 higher. Livestock trade is
mostly higher with cattle leading. Precious metals are mixed with gold up 34.00.
CORN:
Corn futures are 1 to 2 cents higher at midday with trade at multi-week
highs as we work to consolidate post-report gains. On the report, carryout came
in 200 million bushels (mb) below last month at 1.738 billion bushels (bb) on
export strength, with world stocks falling by 7.7 million metric tons (mmt) to
296.4 mmt. The weekly ethanol report showed production 5,000 barrels per day
(bpd) higher and stocks 400,000 barrels lower. Colder temps toward the weekend
may slow remaining fall fieldwork but the warmer second week should allow for
further progress. Weekly export sales are expected to be in the 400,000 to
700,000 metric ton (mt) range. Basis action is showing some softness with the
board strength. On the March chart the 20-day moving average at $4.36 is
support, which we closed solidly above Friday, with the Upper Bollinger Band at
$4.48 as resistance, which we are just above at midday.
SOYBEANS:
Soybean futures are 3 to 4 cents higher at midday with trade edging higher
after early weakness as the market looks to move past nearby resistance with
oil leading the product complex Wednesday. Meal is narrowly mixed and oil is 40
to 50 points higher. On the WASDE report, domestic carryout came in at 470 mb,
unchanged from last month, with world stocks edging higher by 200,000 mt to
131.9 mmt. South America looks to see the recent pattern continue with
near-term concerns remaining limited. Weekly export sales are expected to be in
the 1.25 mmt to 1.50 mmt range. Basis is expected to remain flat to firmer in
the short term. On the January chart, trade has resistance at the 20-day moving
average at $9.91, which we are above at midday, with the Lower Bollinger Band
at $9.75 as support.
WHEAT:
Wheat futures are 2 to 5 cents higher at midday with Chicago action leading
as trade works to consolidate further through nearby resistance after a mildly
supportive report and positive row-crop spillover. The Plains will cool a bit
in the short term with further moisture limited as well. On the WASDE report,
domestic carryout fell 20 mb to 795 mb with world stocks 100,000 mt higher to
257.9 mmt. Black Sea conditions should remain supportive into early winter.
MATIF wheat is a bit firmer Wednesday but holding recent gains. Weekly export
sales are expected to be in the 200,000 to 350,000 mt range. On the KC March
chart, support is the 20-day moving average at $5.56 after pushing through it
to start the week with the Upper Bollinger Band at $5.76 the next level of
resistance.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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