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DTN Grain Midday: Corn Mixed; Soybeans, Wheat Lower

Ernst Undesser
By David Fiala DTN Contributing Analyst November 20, 2017

DTN Grain Midday: Corn Mixed; Soybeans, Wheat Lower

Corn is near unchanged, while soybeans and wheat are lower at midday.

CORN

Corn trade is narrowly mixed at midday with trade trying to establish support after the upside recovery on Friday. Ethanol margins are stable to softer with energies weaker to start the week, with demand likely to bump up this week for Thanksgiving travel.

Basis and carry have shown further improvement with carry trading at 11 1/2 cents this morning. Remaining harvest is struggling with poor drying conditions this week, but we are near the end overall with the weekly report expected to be past 90%.

The weekly export inspections remain soft, at 632,793 metric tons. On the December chart, support is at the new low at $3.36 1/2. Resistance is at the $3.48 3/4 50-day moving, then the $3.58 six-week high.

SOYBEANS

Soybean trade is 2 to 4 cents lower at midday with trade trying to consolidate the gains from Friday. Meal is flat to $1 lower, and oil is 45 to 55 points lower. South American weather looks to add some rain in Argentina in the dry areas near term, with overall issues remaining limited.

Export business has been quiet for the bulk of November on the daily wire, which has raised some concern. The weekly report should show harvest effectively complete. The weekly export inspections remained solid at 2.131 million metric tons. India increased palm oil duties, which are weighing on world veg oil prices.

On the January chart, prices got back above all the major moving averages, with the 20-day at $9.86, the first level of support, which we are just above at midday, and the recent high at $10.08, the next level of resistance.

WHEAT

Wheat trade is 1 to 8 cents lower at midday with choppy trade continuing near the lower end of the range. Dryness is a concern that is limiting downside on the winter wheat contracts, but that has not translated into more aggressive short-covering. If the row crops can put together some momentum, it should start to increase short-covering in wheat, but that has faltered so far.

The weekly crop conditions are expected to be steady to lower with planting pretty well wrapped up. Export inspections were soft at 259,264 metric tons. The Russian ruble weakness recently helped 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 KC, support is the $4.13 1/2 low, with the 10-day and 20-day at $4.25, as resistance.

General Comments

The U.S. stock market is higher at midday with the Dow up 85 points. The interest rate products are lower. The dollar index is 25 points higher. Energies are lower with crude 0.70 lower. Livestock trade is mostly lower. Precious metals are lower with gold down $11.90.

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Ernst Undesser
By David Fiala DTN Contributing Analyst November 20, 2017