12/9/2019 - 11:29:00
DTN Midday Grain Comments 12/09 10:58 Soybeans Sharply Higher at Midday; Corn, Wheat Mixed Corn is flat to 1 cent higher, soybeans are 11 to 13 cents higher and wheat is 2 cents lower to 3 cents higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow down 55. The dollar index is 10 lower. Interest rate products are mixed. Energies are narrowly mixed with crude $0.10 lower. Livestock trade is mostly lower. Precious metals are mostly higher with gold up $1. CORN Corn trade is narrowly mixed with trade working sideways and unable to grasp spillover support from soybeans so far. Ethanol margins have remained steady with corn and ethanol futures sideways and unleaded at the upper end of the range overall. Basis has held up well with some strength showing up at processors again. Weekly export inspections remain soft at 481,097 metric tons, and harvest is expected to be around 93% complete. On the March contract, support is the lower Bollinger band at $3.73, which we have held just above, with resistance the 20-day at $3.80. SOYBEANS Soybeans are 11 to 13 cents higher with support from short-covering and positive trade reports spurring buying just before the day session. Meal is $1.00 to $2.00 higher, and oil was 45 to 55 points higher. The real remains cheap vs. the dollar with Brazilian weather still in good shape. Argentina weather is more mixed and coming off a dry week. Bean basis has moved to a more sideways trend short term with the futures rally likely to soften basis in some areas this week. Weekly export inspections remained solid at 1.327 million metric tons. January chart support is the lower Bollinger band at $8.63, which we are finally pulling away from. Resistance is well above the market at $8.97, where the 20-day is and we are above at midday. The upper Bollinger band is at $9.29. WHEAT Wheat trade is 3 cents lower to 3 cents higher with Minneapolis leading at midday with trade back to the lower end of the recent range. The Chicago/KC March spread is back to 95 cents near the highs. Chicago also holding a 7-cent premium to Minneapolis, which has narrowed to start the week. The dollar remains range bound. Export business has been quiet so far this week. The forecast dries the Plains back out short term, with little change to world conditions north and south this week. The weekly export inspections were range bound at 313,810 metric tons. The March KC chart support is the lower Bollinger band at $4.23, and resistance the 20-day at $4.35. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (AG) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.