DTN Midday Grain Comments 11/30 15:20
Corn, Soybeans Higher at Midday
Trade is higher at midday, led by soybeans.
By David Fiala
DTN Contributing Analyst
The U.S. stock markets are mixed with the Dow down 40 points. The interest
rate products are mixed. The dollar index is 20 points higher. Energies are
higher with crude up $0.60. Livestock trade is mostly lower. Precious metals
are higher with gold up $6.
Corn trade is 2 to 4 cents higher with trade firming up during the day
session with light chart buying showing up. Basis is expected to stay steady to
start the week, with poor weather potentially slowing movement in the near
term. Ethanol margins are slightly improved this morning with gains in the
energy complex offsetting the firmer corn trade. The weekly export inspections
were disappointing at 298,692 metric tons. On the March chart, first support
was the recent low at $3.65, with the 20-day at $3.73 chart resistance. Expect
buy stops above here, the 50-day at $3.86 is the next chart level above the
Soybean trade is 4 to 6 cents higher at midday, with trade moving nearly a
dime higher with good commercial buying evident. Meal is $1 to $2 higher, and
oil is 30 to 40 points higher. South American weather looks better for Brazil
than Argentina in the near term with no major issues so far. Soybeans basis has
been fairly quiet in recent days, with no major moves. The weekly export
inspections were strong at 1.835 million metric tons. On the January chart,
support is now the 20-day moving average at $8.66 with resistance at $8.81, the
50-day then $9.21-$9.24 which is the area of the 100-day and 3-month high. If
trade can stay above the nearby support, some additional chart buying may come
Wheat trade is mixed at midday with spread unwinding favoring the Kansas
City and Minneapolis trade as they move towards 5 to 8 cents higher, while the
strong dollar limits buying. Commercial selling has picked up a bit in the
Chicago trade as the spreads unwind. World weather conditions should be stable
this week, with some improvement for China expected. Condition reports from the
Ukraine are significantly lower than last year. Weekly export inspections were
soft at 275,736 metric tons. The recent winter storms will slow down this week
in the U.S. On the March Kansas City chart support is at the new contract low
printed Monday and today at $4.65 with resistance at the $4.73 10-day moving
average which we are challenging at midday.
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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