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DTN Midday Grain Comments 11/25 10:52
Corn, Wheat Futures Lower at Midday; Soybeans Mixed
Corn futures are 1 to 2 cents lower at midday Monday; soybean futures are
narrowly mixed; wheat futures are 4 to 14 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 1 to 2 cents lower at midday Monday; soybean futures are
narrowly mixed; wheat futures are 4 to 14 cents lower. The U.S. stock market is
firmer at midday with the S&P 24 points higher. The U.S. Dollar Index is 60
points lower. The interest rate products are firmer. Energy trade is mixed with
crude off 2.15 with natural gas up .35. Livestock trade is mostly higher with
cattle leading. Precious metals are weaker with gold down 78.50.
CORN:
Corn futures are 1 to 2 cents lower at midday with rangebound action
continuing with lightly firmer spread action and little fresh news. Ethanol
margins should remain flat to narrower in the short term. Colder weather should
continue to limit fall fieldwork with a little warmer weather next week to
potentially get fall fertilizer application rolling. The daily export wire saw
Mexico secure 454,090 metric tons (mt) of corn. Weekly export inspections were
solid at 903,049 mt, with year-to-date pace at 138%. Basis action will likely
remain flat until March becomes front-month. On the December chart, the 20-day
moving average at $4.22 is support, which we tested overnight, with the recent
high at $4.34 3/4 as resistance.
SOYBEANS:
Soybean futures are narrowly mixed at midday with meal strength trying to
get us a positive start to the week with little other fresh news. Meal is 4.00
to 5.00 higher and oil is 70 to 80 points lower. South America looks to see
little change to the short-term weather pattern with crop development moving
along well, overall, with a few drier pockets lingering. Weekly export
inspections were solid at 2.102 million metric tons (mmt), with year-to-date
pace at 112%. Basis is expected to remain flat to firmer in the short term. On
the January chart, trade has resistance at the 20-day moving average at $9.99
with the Lower Bollinger Band at $9.75 as support.
WHEAT:
Wheat futures are 4 to 14 cents lower at midday as we follow sharply lower
euro trade with the dollar weakness likely to limit downside if it can be
sustained. The Plains are expected to stay colder with precipitation chances
fading for the second week of the forecast from late last week's runs. MATIF
wheat is back to the lower end of the range, off about the equivalent of 20 to
23 cents per bushel Monday morning. The last crop condition report is expected
to show further condition improvement, with planting and emergence caught up.
Weekly export inspections were decent at 360,513 mt. On the KC December chart,
support is the fresh low at $5.31 1/2 and resistance the 20-day at $5.59.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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