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DTN Midday Grain Comments 12/06 10:51
Corn Futures Higher at Midday; Soybeans, Wheat Flat-Lower
Corn futures are 3 to 4 cents higher at midday Friday; soybean futures are
flat to a penny lower; wheat futures are flat to 2 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 3 to 4 cents higher at midday Friday; soybean futures are
flat to a penny lower; wheat futures are flat to 2 cents lower. The U.S. stock
market is mixed at midday with the S&P 15 higher. The U.S. Dollar Index is 25
points higher. The interest rate products are mostly higher. Energy trade is
weaker with crude down .90 with natural gas unchanged. Livestock trade is
mostly higher with cattle leading. Precious metals are firmer with gold up
14.00.
CORN:
Corn futures are 3 to 4 cents higher at midday with firmer spread action
continuing and the March contract pressing through nearby resistance. Ethanol
margins are narrowing a bit with corn firming and unleaded staying at the lower
end of the range with demand likely to stay soft until we get closer to
Christmas travel. Fall fertilizer and tillage should move along in much of the
Corn Belt with warmer weather into the weekend. Basis action has been mixed in
the short term with most strength on the river system. On the March chart, the
20-day moving average at $4.35 is resistance, which we are just above at
midday, with the Lower Bollinger Band at $4.25 as support.
SOYBEANS:
Soybean futures are flat to a penny lower at midday with two-sided action as
oil looks to lead the product complex higher while meal tests contract lows
again limiting upside. Meal is 4.50 to 5.50 lower and oil is 100 to 110 points
higher. South America looks to see the recent pattern continue with Brazil
still the drier area in the short term but concerns remain limited. 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 $9.97 , which we faded
from Friday morning with the Lower Bollinger Band at $9.66 as support.
WHEAT:
Wheat futures are flat to 2 cents lower at midday with trade working to
consolidate the midweek gains into the weekend with KC action just below nearby
resistance. The Plains are expected to be a bit warmer and drier in the short
term with the second week looking wetter. Black Sea conditions have declined a
bit into dormancy which is adding some support. MATIF wheat has been narrowly
mixed, consolidating the recent gains, with the dollar seeing mixed action
after the jobs report as it stays off the upper end of the range. On the KC
March chart, support is the recent low at $5.34 and resistance the 20-day
moving average at $5.57.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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