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DTN Midday Grain Comments 11/08 10:49
Corn Futures Higher at Midday; Soybeans Lower; Wheat Flat-Lower
Corn futures are 2 to 3 cents higher at midday Friday; soybean futures are 6
to 8 cents lower; wheat futures are flat to 2 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 2 to 3 cents higher at midday Friday; soybean futures are 6
to 8 cents lower; wheat futures are flat to 2 cents lower. The U.S. stock
market is mixed at midday with the S&P 25 points higher. The U.S. Dollar Index
is 39 points higher. The interest rate products are firmer. Energy trade is
weaker with crude down 2.00 with natural gas flat. Livestock trade is weaker.
Precious metals are softer with gold off 13.00.
CORN:
Corn futures are 2 to 3 cents higher at midday with action holding near the
fresh highs for the move scored Friday morning in quiet pre-report action.
Ethanol margins have narrowed a little with the corn strength but remain
rangebound. Rains look to continue for much of the Corn Belt into the weekend,
keeping remaining harvest paused. The daily export wire saw another 200,480
metric tons (mt) of corn booked by unknown. On the WASDE report at 11 a.m. CST,
trade is looking for domestic carryout at 1.938 billion bushels (bb), down from
1.999 bb last month with yield unchanged at 183.8 bushels per acre (bpa). Basis
action is starting to firm in the areas that have went post-harvest but is
still mostly flat. On the December chart, the 20-day moving average at $4.14
1/4, with the fresh high at $4.31 3/4 as the next level up, then the fall high
at $4.33.
SOYBEANS:
Soybean futures are 6 to 8 cents lower at midday with trade fading off the
late-session surge from Thursday, but holding solidly in the upper end of the
recent range pre-report. Meal is 2.00 to 3.00 lower, and oil is flat to 10
points lower. Remaining harvest will likely linger into the middle of the month
with the recent weather pattern, while South America continues to allow for
good early season progress. The daily export wire saw 107,000 mt sold to China
and 132,000 mt to unknown. On the report, carryout is expected at 535 mb from
550 mb last month and yield at 52.8 bpa versus 53.1 bpa last month. Basis is
expected to remain flat to firmer in the short term. On the January chart,
trade has support at the 20-day moving average at $9.99, which we are
consolidating above, with the Upper Bollinger Band at $10.21, which we are just
above overnight.
WHEAT:
Wheat futures are flat to 2 cents lower at midday with choppy trade
continuing and Chicago action leading as it pulls back ahead of KC values
nearby. Good rain coverage is expected for the Plains into midweek to boost
growth. MATIF wheat is firmer with the dollar holding well below the spike
highs despite bouncing a little. Weekly export sales were OK at 374,700 mt, but
off 20% from the 4-week average. On the report, trade is looking for carryout
at 813 mb versus 812 mb last month. On the KC December chart, support is the
lower Bollinger Band at $5.59 and resistance the 20-day moving average at $5.78.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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