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DTN Midday Grain Comments 11/12 10:56
Corn, Soybean, Wheat Futures Lower at Midday
Corn futures are 1 to 3 cents lower at midday Tuesday; soybean futures are
12 to 14 cents lower; wheat futures are 8 to 11 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 1 to 3 cents lower at midday Tuesday; soybean futures are
12 to 14 cents lower; wheat futures are 8 to 11 cents lower. The U.S. stock
market is weaker at midday with the S&P 13 points lower. The U.S. Dollar Index
is 44 points higher. The interest rate products are weaker. Energy trade is
mixed with crude down .17 with natural gas up .05. Livestock trade is broadly
firmer. Precious metals are mixed with gold down 11.00.
CORN:
Corn futures are 1 to 3 cents lower at midday with firmer spread action as
we fade back from the test of the recent highs overnight. Ethanol margins are
narrowing with corn strength while unleaded remains at the lower end of the
range. Open weather for most of the Corn Belt is expected to return this week,
allowing remaining harvest to wrap up along with fall fieldwork to start. The
weekly Crop Progress report, delayed to Tuesday due to Monday's holiday, is
expected to show harvest near 95%. The daily export wire saw 110,500 metric
tons (mt) sold to Mexico. Weekly export inspections remain rangebound at
793,012 mt with year-to-date shipments at 131%. Basis action is starting to
firm in the areas that have gone post-harvest but is still mostly flat. On the
December chart, the 20-day moving average is $4.17, with the fresh high at
$4.34 3/4.
SOYBEANS:
Soybean futures are 12 to 14 cents lower at midday with trade fading to
session lows after choppy early action; oil is the downside leader in products.
Meal is narrowly mixed, and oil is 190 to 200 points lower. Remaining harvest
should be wrapped up this week with the weekly report expected to be near 99%.
South America continues to allow for good early season progress with some spots
of long-term concerns in southern Brazil and potentially Argentina. Weekly
export inspections were strong at 2.278 million metric tons (mmt) with
year-to-date pace at 106%. Basis is expected to remain flat to firmer short
term. On the January chart, trade has support at the 20-day moving average at
$10.01, which we are consolidating above, with the Upper Bollinger Band at
$10.28, which we faded from Monday.
WHEAT:
Wheat futures are 8 to 11 cents lower with the strong dollar continuing to
limit upside and the lows from Monday holding so far. The Plains are expected
to see additional moisture 6 to 7 days out with emergence and conditions likely
showing further catching up on this week's progress report. MATIF wheat is a
bit softer Tuesday morning after two-sided trade with the dollar threatening to
move to new highs for the year. Weekly export inspections were solid at 347,321
mt with the year-to-date pace at 135%. On the KC December chart, support is the
recent low at $5.47, which we are working to hold, and resistance the 20-day at
$5.75.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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