DTN Midday Grain Comments 11/21 11:06
Grains Mixed at Midday
Soybeans lead at midday, with corn flat and wheat mixed.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are firmer with the Dow futures up 175. The
interest rate products are firmer. The dollar index is 15 lower. Energies are
firmer with crude up $1.10. Livestock trade is mixed. Precious metals are
firmer with gold up $6.40.
Corn trade is narrowly mixed at midday with trade grinding along again as we
head to the Thanksgiving break. The weekly ethanol production report showed
production off 25,000 barrels per day, but still higher than this week a year
ago, and stocks were off 725,000 with the draw down for Thanksgiving travel.
Corn basis should be sideways to firmer the rest of the month if the board says
sideways to weaker. Trade is also now heavily oversold in the near term. The
export news has been mixed so far this week. On the December chart we edged
just below the 50-day at $3.65 with the lower Bollinger Band at $3.59 below
that now support. Resistance above the 50-day is at the $3.68 20-day moving
Soybean trade is 6 to 8 cents higher with trade rebounded back towards the
upper end of the range. Meal is flat to $1 higher and oil 35 to 45 points
higher. Export business has picked up recently as harvest winds down with
multiple sales on the daily wire over the past week. South American continues
to make good progress with limited weather concerns at this juncture. Trade
progress continues to get mixed signals from the administration. Support the
100-day at 8.75 with the upper Bollinger band at 9.03 resistance.
Wheat trade is flat to 4 cents lower at midday in quiet action as we
continue to scrape along the lower end of the range.Kansas City wheat remains
very oversold on the oscillators which should help provide support at these
levels but we will need some positive action to confirm with Chicago not quite
as oversold, and the Chicago/Kansas City spread still widening. The dollar has
dropped with calmer outside markets this morning. On the December Kansas City
chart we have support at the lows at $4.69, and resistance the 10-day at $4.83.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser
He can be reached at email@example.com
Follow him on Twitter @davidfiala
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