DTN Midday Grain Comments 12/18 11:28
Corn, Wheat Higher at Midday
Grain trade is flat to higher at midday after a strong start to the day.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are firmer with the Dow futures up 220 points.
The interest rate products are higher. The dollar index is 15 higher. Energies
are mixed with crude 90 cents lower. Livestock trade is mixed with live cattle
and hogs higher. Precious metals are flat to higher with gold up $2.
Corn trade is 2 to 5 cents higher at midday with firmer trade continuing.
Basis has remained stable recently with some localized improvements. If crude
can sustain a short-term bounce here, it will help restore better ethanol
margins, but we have faltered at midday. Corn exports were a little
disappointing at 693,500 metric tons but an additional sale of 126,000 metric
tons of corn to unknown. The March corn chart items remain the same with
support at $4.01 at the 10-day moving average and resistance at the $4.22
200-day moving average.
Soybean trade is flat to 3 cents higher overnight with meal $3 to $4 higher
and oil flat to 10 points lower. Spreads have weakened at midday potentially
indicating weakening commercial demand. The South American weather items have
not provided much impact this week. Weekly export sales were softer than recent
weeks at 696,000 metric tons, 146,800 of meal, and 38,800 of oil. The USDA
announced 1.5 million metric tons to China from the trade delegation as well.
Nearby January chart support now is at the $10.20 100-day then the $10.13
50-day. Resistance is at the $10.37 10-day moving average, and the recent high
Wheat trade is 4 to 9 cents higher across the three contracts at midday with
trade building on the recent strength. Fundamental support continues to be
noted with the Russian uncertainty and the resulting improved commercial demand
adding some just-in-case length. Weather items appear fairly benign with some
beneficial snow cover developing in some northern hemisphere locations. The
dollar is back near the recent highs but that does not seem to limiting trade
right now. The weekly export sales were ok at 476,300 metric tons. On the March
Kansas City chart, we moved through the 200-day moving average overnight at
$6.82, and a close above this area will be encouraging on the chart. The
Chicago March 200-day and highest major moving average is at $6.15.
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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