DTN Midday Grain Comments 12/14 11:51
Soybeans Lower; Wheat, Corn Slightly Higher at Midday
Soybeans are down a dime at midday, while wheat and corn are lightly firmer.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher at midday with the Dow futures up
30 points. The interest rate products are lower. The dollar index is 30 points
higher. Energies are mixed with crude up 10 cents. Livestock trade is mostly
higher. Precious metals are firmer with gold up $8.
Corn trade is fractionally higher in quiet trade at midday as we continue to
work around the lower end of the range. Ethanol futures have also remained at
the low end of the range with slightly lower midday trade. The blenders are
seeing the biggest advantage at this juncture. Basis and carry have been
sideways so far this week with some firmness at end users. The weekly export
sales were OK at 866,900 metric tons. On the March chart, support is the
contract low at $3.47 1/2 printed Tuesday with resistance at the $3.53 20-day
moving average, then the 50-day moving average at 3.58.
Soybean trade is 8 to 12 cents lower this morning with trade testing the
lower end of the recent range as we draw closer to the rains forecast in South
America. Meal is 3.00 to 4.00 lower, and oil is 15 to 25 points lower. South
American weather looks better with rains expected in the next seven days for
some of the driest areas with trade watching closely for follow-up rains after
that as planting wraps up. Basis and carry has been sideways for soybeans this
week. Weekly export sales were mixed with 1.45 million metric tons of beans,
455,400 of meal, and 14,500 of oil. On the January chart support is the recent
low at $9.68 below that. Resistance is at the $9.76 200-day.
Wheat trade is flat to 3 cents higher at midday with light short-covering
continuing with trade looking to test the first upside resistance if buying can
be sustained. The Plains continue to be dry in the short term with some better
moisture expected in the extended forecast. The Australian harvest will be
nearing effective completion soon. Russian remains the dominant origin in the
world export markets, with some production estimates still rising for them.
Russia is also looking at buying from farmers to support domestic prices.
Weekly export sales showed improvement at 588,800 metric tons. On the March KC
contract, chart support is the $4.10 1/2 fresh contract low scored on Monday,
with the 10-day at $4.22 first chart resistance.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Advisor.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.