DTN Grain Midday: Stock Market Weaker

Photo: University of Arkansas

Corn futures are 3 to 4 cents lower, soybeans are 5 to 6 cents lower and wheat is 6 to 16 cents lower.

MARKET SUMMARY:

The U.S. stock market is weaker with the Dow down 210. The U.S. Dollar Index is 20 points lower. Interest rate products are firmer. Energies are firmer with crude up .60. Livestock trade is mostly higher. Precious metals are mixed with gold up $5.00.

CORN:

Corn futures are 3 to 4 cents lower at midday with rangebound trade continuing as we head towards the Thanksgiving break. The daily export sales wire was quiet again Wednesday. The weekly ethanol report showed production up 28,000 barrels per day (bpd) with stocks up by 663,000 barrels with poor driving demand last week; ethanol futures are losing ground to unleaded at midday.

Basis remains generally strong. On the December contract support is the 20-day moving average at $4.13 with the lower Bollinger band at $3.94 as the next level down with the fresh high at $4.29 3/4 scored Monday with the upper Bollinger band at $4.31 above that.

SOYBEANS:

Soybean futures are 5 to 6 cents lower with trade continuing to chop just below the highs with little fresh news. Meal is $1.00 to $2.00 lower and oil is 45 to 55 points higher. The daily export wire has remained quiet for soybeans with concerns about China crush margins and cancellations rumored but unconfirmed. South America has some dry pockets building with northern Brazil looking to see more moisture short term; the southern 1/3 of Brazil will be very dry the next week.

Wetter action is expected for most in the longer-term forecast. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels with freight issues remaining in play. The January chart has resistance at the fresh high of 12.00 scored Monday; the upper Bollinger band is at $12.22 and support is the 20-day moving average at $11.32.

WHEAT:

Wheat futures are 5 to 17 cents lower with broad selling during the day session as we work towards the lower end of the range after failing to break out Tuesday. The dollar has turned lower again, which should be supportive overall. World export tenders continue to go to Black Sea origin for the most part with little change in overall conditions there. The western U.S.

Plains remain dry in the short term as we head towards dormancy with some snows across Kansas bringing a bit of moisture. KC is at a 45-cent discount to Chicago with spreads reversing after testing the upper end of the range; Minneapolis is at -48. KC December chart resistance is the 20-day moving average at $5.52, which we will have broken back below at midday; support is the lower Bollinger band at $5.40.

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