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DTN Grain Close: Commodities Enjoy Their Own Black Friday

Ernst Undesser
From DTN/Telvent November 17, 2017

DTN Grain Close: Commodities Enjoy Their Own Black Friday

©Debra L Ferguson Stock Images

Not only were grains higher on Friday, but several outside commodities were also in the black, turning Friday into Commodity Appreciation Day. In the case of grains, December soybean meal led percentage gainers and helped lift January soybeans 18 1/2 cents to a small gain for the week.

 

Midday: Row crops are firmer at midday, wheat mixed.

CORN

Corn trade is 3 to 5 cents higher at midday with short profit taking ahead of the weekend. We are still down on the week and it appears we will close with a new weekly low so position squaring could give us some volatility near the close this afternoon.

Ethanol margins remain at stable with crude staying near the upper end of the range, and ethanol futures higher. Basis and carry has shown further improvement with carry trading below 12 cents this morning. Remain harvest is struggling with poor drying conditions this week, but we are near the end overall.

On the December chart support is at the new low at $3.36 1/2. Resistance is at the $3.49 1/2 50-day moving then the $3.58 six-week high.

SOYBEANS

Soybean trade is 5 to 10 cents higher at midday with trade continuing to consolidate above the $9.76 area this morning. Meal is 4.00 to 5.00 higher, and oil is 15 to 25 points lower. South American weather looks to continue working drier in Argentina in the near term, but major issues remain very limited for now. Export business has been quiet for the bulk of November on the daily wire.

On the January chart, trade is trying to close above the 100-day at $9.76 going into the weekend with the September low of $9.60 the next notable support with many chart analysts mentioning the $9.50 level. Trade is testing the 200-day at $9.79 at midday, and a close above the 100 and 200-day going into the weekend would likely encourage some short covering Sunday night.

WHEAT

Wheat trade is mixed with spring wheat flat to 2 cents lower and winter wheat 3 to 5 cents higher at midday. Dryness is a concern, which is limiting downside on the winter wheat contracts, but that hasn’t translated into more aggressive buying yet. The Russian ruble weakness recently helps Russian competitiveness on the world market, with business to the Middle East marked by continued steady cash trade.

Basis has firmed a bit on the plains in recent days but overall remains wide. On the December Kansas City support is the $4.13 1/2 low, with the 10-day and 20-day at $4.25, as resistance this afternoon.

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Ernst Undesser
From DTN/Telvent November 17, 2017