DTN Midday Grain Comments 12/06 10:56
Corn and Bean Futures Lower, Wheat Mixed Midday Wednesday
Corn trade is 5 to 6 cents lower; beans are 4 to 6 cents lower and wheat
trade is 2 cents lower to 7 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is flat with the S&P 2 points higher. The dollar index
is 10 points higher. Interest rate products are mixed. Energies are sharply
lower with crude down $2.80 and natural gas off $0.05. Livestock trade is
mostly lower. Precious metals are lower with gold off $5.60.
Corn trade is 5 to 6 cents lower with trade fading back to support levels
with spread action remaining flat to slightly firmer after failing to extend
early strength. Ethanol margins are narrowing with the recent corn and unleaded
action with the weekly report showing production 65,000 barrels per day higher,
and stocks rising by 60,000 barrels. Basis should remain steady short term. The
daily wire was quiet today. South American weather should see little change in
the immediate term with the extended forecast looking wetter. On the March
chart the 20-day at $4.85 is nearby support as we try to consolidate above it
with the Upper Bollinger Band at $4.97 the next round up.
Soybean trade is 4 to 6 cents lower with trade giving back early gains again
to stay mired in the lower end of the recent range with product action
continuing to slide as well. Meal is 5.00 to 6.00 lower and oil is 50 to 60
points lower. The daily wire saw 136,000 metric tons sold to China. Basis
continues to drift sideways short term. The South American weather pattern will
be watched for confirmation of the expected uptick in rain at the end of the
two-week forecast. The January soybean chart has resistance at the 20-day at
$13.47, with the lower Bollinger Band at $12.98 as support which we are working
to hold at midday.
Wheat trade is 2 cents lower to 7 cents higher with Chicago action
continuing to lead with firmer spread action as China secured another 372,000
metric tons of soft red wheat on the daily wire continuing the recent buying
binge. The plains should see mostly seasonal to slightly warmer temps short
term. World weather has shown little change in recent days with little concern
in the northern Hemisphere for now. Matif wheat is firmer with the dollar back
near the recent highs. On the KC March Chart, support is at the 20-day moving
average at $6.38 with the Upper Bollinger Band at $6.78 as resistance as we try
to consolidate the recent gains further as we work on the seventh higher day in
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David Fiala can be reached at firstname.lastname@example.org.
Follow him on X, formerly Twitter, @davidfiala.
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