DTN Midday Grain Comments 11/26 11:24
Grains Mixed at Midday
Corn and wheat are higher at midday, soybeans are lower.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are mixed with the Dow futures down 15. The
interest rate products are lower. The dollar index is 27 lower. Energies are
mostly higher with crude down 0.10. Livestock trade is mostly higher. Precious
metals are mixed with gold flat.
Corn trade is 2 to 3 cents higher at midday with light follow-through buying
in light holiday trade. The weekly ethanol production report showed a
12,000-barrel-a-day increase in production and 1.5% lower stocks ahead of the
holiday. The warmer temperatures will likely lessen nearby feed demand but
livestock prices are still encouraging heavier carcass weights. 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 trade has
eased above the 10-day and 20-day moving averages at $3.86-87 at midday with
the $4.01 November high the next area up.
Soybean trade is 5 to 10 lower at midday. Meal is $1 to $2 lower and oil is
flat to 10 points higher. South American crop progress and conditions should
continue to improve in the near term with a better weather pattern. Crush
margins remain strong domestically, and basis has firmed this week indicating
demand remains strong. USDA announced 120,000 metric tons of soybeans sold to
China. Nearby chart support is the 100-day moving average at $10.42 which we
are testing at midday, with the 10-day and 20-day moving averages below that at
$10.33. Resistance will be the recent high at $10.86.
Wheat trade is 2 to 6 higher at midday across the three exchanges with
commercial buying support continuing, and fresh chart buying from taking out
the highs of the previous move yesterday. The dollar continues to hold near the
upper end of the range but hasn't seriously threatened to move higher this week
with a little bit of a weaker trend developing. Weather and the Russian/Ukraine
political news will be watched with warmer temps in the United States limiting
weather stress but Russia moving into a colder stretch. On the March Kansas
City chart, support is the $6.15 area that was the old high taken out
yesterday, with the 10-day at $6.06 below that. Resistance is the 100-day at
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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