DTN Midday Grain Comments     12/09 10:56

   Wheat Futures Higher at Midday; Soybeans Lower; Corn Flat-Higher

   Corn futures are flat to 1 cent higher at midday Monday; soybean futures are 
2 to 3 cents lower; wheat futures are 5 to 7 cents higher.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn futures are flat to 1 cent higher at midday Monday; soybean futures are 
2 to 3 cents lower; wheat futures are 5 to 7 cents higher. The U.S. stock 
market is weaker at midday with the S&P 23 points lower. The U.S. Dollar Index 
is 18 points lower. The interest rate products are weaker. Energy trade is 
firmer with crude up 1.40 with natural gas .13 higher. Livestock trade is 
mostly higher with cattle leading. Precious metals are firmer with gold up 
32.00.

CORN:

   Corn futures are flat to a penny higher at midday with trade working to 
consolidate through the nearby resistance with little other fresh news to start 
the week ahead of the WASDE report on Tuesday. On the report, trade is looking 
for carryout at 1.902 billion bushels (bb) versus 1.938 bb last month, with 
world stocks edging lower. Ethanol margins are getting a blending boost from 
unleaded rebounding. Generally warmer temps for the center of the country 
should keep fall fieldwork moving ahead. Weekly export inspections were solid 
at 1.05 million metric tons (mmt) with year-to-date pace at 132% of a year ago. 
Basis action has been mixed in the short term with most strength on the river 
system. On the March chart, the 20-day moving average at $4.35 is support, 
which we closed solidly above Friday with the Upper Bollinger Band at $4.44 as 
resistance.

SOYBEANS:

   Soybean futures are 2 to 3 cents lower at midday with early strength fading 
again with meal holding gains while oil fades back to the lower end of the 
range with little other fresh pre-report news. Meal is 1.00 to 2.00 higher and 
oil is 50 to 60 points lower. On the WASDE report, trade is looking for 473 
million bushels (mb) on carryout versus 470 mb last month, with world stocks 
slightly higher. South America looks to see the recent pattern continue with 
Brazil drier in recent days but still in good shape. Weekly export inspections 
were strong at 1.622 million metric tons (mmt) with year-to-date pace at 119%. 
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 of $9.94, which we 
faded back below at midday, with the Lower Bollinger Band at $9.72 as support.

WHEAT:

   Wheat futures are 5 to 7 cents higher at midday with trade testing nearby 
resistance as well with KC action leading to start. The Plains are expected to 
be a bit warmer through midmonth with additional moisture limited in the short 
term. On the WASDE report, trade is looking for carryout at 815 mb, same as 
last month, with world stocks steady as well. Black Sea conditions have 
declined a bit into dormancy, which is adding some support. MATIF wheat is 
narrowly mixed to start the week, with the dollar holding in the middle of the 
recent range. Weekly export inspections eased at bit at 226,513 metric tons 
(mt) with year-to-date pace at 130% of last year. On the KC March chart, 
support is the recent low at $5.34 and resistance the 20-day moving average at 
$5.56, which we have edged above overnight.

    

   David Fiala can be reached at [email protected]

   Follow him on social platform X @davidfiala

    

    




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