DTN Midday Grain Comments 11/24 11:17
Grains Mixed at Midday
Row crops are lower at midday while wheat is mixed.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are flat to higher with the DOW futures up 3.
The interest rate products are higher. The dollar index is 19 lower. Energies
are mixed with crude up 0.30. Livestock trade is mixed. Precious metals are
mixed with gold down $1.
Corn trade is 2 to 4 cents lower in quiet midday trade with some light
selling spilling over from the weaker soybean trade. The overnight up to midday
range has been less than a nickel illustrating slow holiday trade. Ethanol
margins remain under pressure but are still at a level that should sustain
production near maximum levels near term. The weekly export inspections were
improved at 529,801 metric tons. The USDA also announced the sale of 116,000
metric tons of milo to unknown. The weekly progress report should show harvest
near completion. No major news is expected this week; grain trade will be
closed on Wednesday night, Thursday and open at 8:30 on Friday and close at
noon. On the March corn chart support is at the $3.80 100-day moving average
with resistance at the $3.88 10-day then the $4.01 November high.
Soybean trade is under pressure at midday, with beans down 8 to 11 cents,
meal is $2 to $4 lower and oil is 20 to 30 points higher. Nearby soybean and
product demand is expected to remain solid in the near term, adding support to
the market after we were able to hold the $10.00 area last week. South American
crop progress and conditions are expected to be improved in the near term. The
weekly export inspections remained strong at 2.784 million metric tons. The
USDA announced export sales of 235,000 metric tons to China, and 174,000 of
meal to Thailand. The weekly crop progress report should show harvest
effectively complete. Nearby chart support for Monday is the $10.30 area which
is being tested at midday, then $10 with resistance now the 100-day up at
$10.43 then the January three-month high reached a few weeks ago at $10.86.
Wheat trade is flat to 3 higher across the three contacts at midday. Prices
do remain near the upper side of the two month range but the upside momentum
has stalled, with the strength of the dollar limiting further buying enthusiasm
although it has backed off a bit this morning. Weather and the Russian/Ukraine
political news will be watched with warmer temps in the United States limiting
weather stress in the coming week, but temps are expected to dip in Russia. On
the March Kansas City chart support is at the $5.96-7 area where we find both
the 10-day and 20-day moving averages. Resistance is the recent high of $6.15
1/2 then the 100-day at $6.29.
David Fiala is a DTN contributing analyst and the president of FuturesOne
and a registered Trading Adviser.
David Fiala can be reached at email@example.com
Follow David Fiala on Twitter @davidfiala
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