Grains Trending Lower at Midday
Corn is 4 to 5 cents lower, soybeans are 15 to 17 cents lower, and wheat is flat to 3 cents lower.
The U.S. stock market is firmer with the Dow up 5 points. The dollar index is 10 points higher. Interest rate products are mostly higher. Energies are mixed. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold flat.
Corn trade is 4 to 5 cents lower at midday with harvest pressure and long liquidation picking up steam with spillover pressure from the soybean pit. The daily export wire was quiet for corn today. Ethanol margins are seeing support from cheaper corn. Basis has started to slide towards harvest levels in many areas with open weather allowing combines to roll. Weekly export sales were strong at 2.14 million metric tons. On the December contract, trade has support at the $3.64 20-day moving average which we are testing at midday, with the recent high at $3.78 as resistance.
Soybean trade is 15 to 17 cents lower at midday with trade testing $10.00 with harvest pressure and fund profit taking in play, with the daily export string ending, but spreads holding firm. Meal is 6.00 to 7.00 lower and oil is 40 to 50 points lower. The ral remains in the lower end of the range ahead of South American planting with farmers waiting for seasonal rains while Argentine farmer selling remains slow. Export offers continue to get tighter in availability as well with meal driving the product complex.
Weekly export sales were strong at 3.19 million metric tons, meal was 323,300 metric tons net, with oil 24,800 metric tons net. The November chart has resistance at the upper Bollinger Band at $10.46 which is also the fresh high with support the 20-day at $9.88.
Wheat trade is flat to 3 cents lower at midday with spillover from the row crops and the stronger dollar providing headwinds. The dollar remains steady vs. the ruble with little change in world export competitiveness with more focus on the dry start in Russia. Kansas City is at a 68-cent discount to Chicago with spreads widening again after the recent strength, while Minneapolis is back to a 16 cent discount with flat action. Wheat drilling progress should expand across the plains short term with OK moisture for most for now but follow-up rain lacking. Weekly export sales were soft at 351,200 metric tons. Kansas City December chart resistance is the fresh high at $5.09, and support is the 20-day at $4.78, which we are tested this a.m.