DTN Midday Grain Comments 11/21 11:15
All Grains Higher at Midday
Trade is higher across the board at midday.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher with the DOW futures up 120. The
interest rate products are lower. The dollar index is 55 higher. Energies are
mixed with crude up 0.50. Livestock trade is mostly higher. Precious metals are
higher with gold up $13.
Corn trade is 2 to 4 cents higher at midday with firmer trade developing
during the day session pushing corn to 8 higher briefly. Basis has firmed with
harvest wrapping up and slower farmer selling with the futures rally slowing.
Ethanol margins are remaining fairly stable in the near term, which should
sustain production. On the December chart the 100-day at $3.69 and the 20-day
at $3.72 were support until trade fell below them early in the week, but we
have moved back above them at midday. The next downside major moving average is
the 50-day at $3.51 which we would label major support now and we would label
the Nov. 5 $3.59 low as nearby support. The USDA announced 132,000 metric tons
of corn sold to an unknown destination.
Soybean trade is 1 to 5 cents higher at midday with trade rebounding from
early weakness, but it has faded back from the early day-session highs. Meal is
flat to $1 lower and oil is 25 to 35 points higher. Nearby demand remains very
strong, which is adding support, but the large supply side and better weather
in South America will limit upside for now. January beans came within a few
cents of $10 earlier in the week and could challenge support again if the
bounce fizzles today. The 20-day at $10.30 is now nearby resistance now, and we
have traded both sides of that this morning. The $10 is support on Jan beans
with the 50-day at $9.84 the next level.
Wheat trade is 1 to 4 cents higher across the three exchanges at midday with
the bounce in gold values mitigating the stronger dollar to an extent. The
Russian/Ukraine political situation will continue to be watched as well as
weather with more concerns about the South American crop appearing. North
American weather looks to remain cool and mostly dry. The 50-day and lowest
major moving average is at $5.84 on the December Kansas City contract is
support while resistance is the recent high at $6.12.
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
Copyright 2014 DTN/The Progressive Farmer. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up