DTN Midday Grain Comments 12/15 11:19
Grains Narrowly Mixed at Midday
The grains trade is narrowly mixed at midday.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher at midday with the Dow futures up
145 points. The interest rate products are lower. The dollar index is 30 points
higher. Energies are mixed with crude up 30 cents. Livestock trade is mixed.
Precious metals are firmer with gold up $0.20.
Corn trade is flat to 2 cents lower at midday with light two-sided trade so
far. Ethanol futures have made new lows this morning, hurting producers and
supporting blenders. Basis and carry look to stay sideways into the end of the
week. USDA announced 134,503 metric tons of corn sold to Costa Rica. The
expiration of the December contract could encourage more selling to test the
$3.36 area of expiration. On the March chart, support is the contract low at
$3.47 printed this morning with resistance at the $3.53 20-day moving average,
then the 50-day moving average at $3.58.
Soybean trade is narrowly mixed at midday with light buying showing up after
the selling seen so far this week, but with momentum unable to consolidate.
Meal is flat to $1 lower, and oil is 20 to 30 points higher. South American
weather should see more rain in the near term with planting wrapping up and
moisture deficits for Argentina. The monthly crush report is expected to show
160 million to 163 million bushel usage and tighter oil stocks on strong
biodiesel production. Basis and carry have been sideways for soybeans this
week. The daily wire showed 126,000 metric tons sold to unknown and 257,000
sold to China. On the January chart, support is the recent low at $9.66 scored
this morning. Resistance is at the $9.76 200-day.
Wheat trade is mixed at midday with the spring wheat the leader this
morning. The trade is trying to pull further away from the lows, and fading on
the first test of nearby resistance. The Plains continue to be dry in the short
term. Some better moisture is expected in the extended forecast with a winter
storm around Christmas. Russia is also looking at buying from farmers to
support domestic prices, along with keeping exports boosted. The daily wire had
130,000 metric tons of hard red wheat sold, illustrating improving
competitiveness on the world stage. On the March KC contract, chart support is
the $4.10 1/2 fresh contract low scored on Monday, with the 10-day at $4.20
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
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