DTN Midday Grain Comments 11/16 11:30
Corn, Beans Down at Midday
Row crops lower at midday, wheat mixed to higher.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are mixed with the Dow futures up 25. The
interest rate products are weaker. The dollar index is 45 lower. Energies are
firmer with crude up $0.65. Livestock trade is mixed with hogs sharply higher.
Precious metals are firmer with gold 6.20 higher.
Corn trade is 3 to 4 cents lower with trade breaking down into support this
morning. The ethanol margins continue to shrink with ethanol futures breaking
lower today with corn, as the overall energy complex is showing better support.
The weekly export sales report showed improvement at 892,500 metric tons. Basis
will likely remain fairly sideways in the near term. On the December chart
support is at the 50-day at $3.65 which we have edged below at midday with the
lower Bollinger Band as further support at $3.61 1/2, with the 10,20, and
100-day just above the market at $3.67-70.
Soybean trade is 5 to 7 cents lower at midday with range bound trade
continuing. Meal is $1 to $2 higher and oil is 30 to 40 points lower. Export
business has shown life this week with another 100,000 metric tons the daily
wire today. NOPA crush continued at a record pace in October. Basis should
remain mostly steady as harvest pressure wraps up. South American continues to
make good progress early in the crop year. The weekly export sales were soft
with 470,000 metric tons of beans, but product sales remained good with 432,200
of meal, and 15,000 of oil. Support is found at the $8.75 area where we find
the 100-day moving average with the 10-day at $8.84. Resistance is up at $9
then the $9.06 three-month high.
Wheat trade is narrowly mixed at midday with quiet trade continuing at
midday. Chicago has gained sharply against the Kansas City and Minneapolis
trade this week with a little weakness this morning. Kansas City Wheat remains
near oversold on the oscillators, which should help provide support at these
levels. The dollar has faded with better action from the pound and euro. The
weekly export sales slipped at a little coming in at 438,800 metric tons, which
is not supportive. On the December Kansas City chart we have support at the
lower Bollinger Band at $4.77, and resistance the 10-day at $4.92.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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