DTN Grain Close: Soybean Meal Pops Higher, Helped By Export Sales

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December soybean meal closed up $5.50 Friday, boosted by a healthy start of export sales commitments in early 2018-19. Soybeans and winter wheat ended modestly higher while corn and spring wheat were a little lower.

 

Midday: Row crops lower at midday, wheat mixed to higher.

CORN

Corn trade is 3 to 4 cents lower with trade breaking down into support this morning. The ethanol margins continue to shrink with ethanol futures breaking lower today with corn, as the overall energy complex is showing better support.

The weekly export sales report showed improvement at 892,500 metric tons. Basis will likely remain fairly sideways in the near term.

On the December chart support is at the 50-day at $3.65 which we have edged below at midday with the lower Bollinger Band as further support at $3.61 1/2, with the 10,20, and 100-day just above the market at $3.67-70.

SOYBEANS

Soybean trade is 5 to 7 cents lower at midday with range bound trade continuing. Meal is $1 to $2 higher and oil is 30 to 40 points lower. Export business has shown life this week with another 100,000 metric tons the daily wire today.

NOPA crush continued at a record pace in October. Basis should remain mostly steady as harvest pressure wraps up. South American continues to make good progress early in the crop year. The weekly export sales were soft with 470,000 metric tons of beans, but product sales remained good with 432,200 of meal, and 15,000 of oil.

Support is found at the $8.75 area where we find the 100-day moving average with the 10-day at $8.84. Resistance is up at $9 then the $9.06 three-month high.

WHEAT

Wheat trade is narrowly mixed at midday with quiet trade continuing at midday. Chicago has gained sharply against the Kansas City and Minneapolis trade this week with a little weakness this morning.

Kansas City Wheat remains near oversold on the oscillators, which should help provide support at these levels. The dollar has faded with better action from the pound and euro. The weekly export sales slipped at a little coming in at 438,800 metric tons, which is not supportive.

On the December Kansas City chart we have support at the lower Bollinger Band at $4.77, and resistance the 10-day at $4.92.

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