DTN Grain Midday: Futures Turn Lower

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    Corn futures are 4 to 5 cents lower at midday Wednesday; bean futures are 6 to 7 cents lower; wheat futures are 9 to 20 cents lower.

    CORN:

    Corn futures are 4 to 5 cents lower at midday Wednesday, scoring fresh highs before fading as we head towards the Thanksgiving break. USDA announced 100,000 metric tons (mt) of corn sold to Mexico on the daily wire.

    Ethanol margins will continue to support near-term production with holiday demand; production is up 19,000 barrels per day (bpd) with stocks 83,000 barrels higher.

    Basis should remain steady to firmer short term with harvest wrapped up and producers shifting to focus on fall fieldwork as they try for a good fall NH3 run. Supplies getting tight in some areas.

    On the December contract we have resistance at the recent high of $5.89, with the upper Bollinger band at $5.87 and the 20-day moving average as support at $5.69, which we continue to hold above.

    SOYBEANS:

    Soybean futures are 4 to 6 cents lower at midday with oil leading the complex so far; meal is backing further away from the highs with spread action remaining firm. Meal is $5.00 to $6.00 lower and oil is 90 to 100 points higher. USDA announced 330,000 mt of soybeans sold on the daily wire to unknown and a 30,000 mt sale of soy oil to India.

    South America looks to continue short-term progress with issues remaining limited for now while the extended forecast looks drier for Argentina and parts of southern Brazil as planting hits the homestretch.

    Crush margins remain very strong for the moment, even as the meal rally slows, pulling back sharply from the recent highs. On the January soybean chart, support is the 20-day moving average at $12.44, which we have consolidated above with the $12.84 fresh high as the next round up from there with the Upper Bollinger band above that at $12.95.

    WHEAT:

    Wheat futures are 9 to 20 cents lower at midday with KC scoring fresh highs again on concerns about quality loss in Australia on heavy rains, Canadian shipping disruptions from floods and Black Sea area uncertainty on politics and exports before reversing lower Wednesday morning. The U.S. dollar is just below 97, continuing to consolidate near the highs, which could eventually become a headwind.

    Plains weather looks little changed short term with longer-term dry concerns for the Southern Plains. Spring wheat is firmer vs. Chicago, moving the premium to $1.88, with KC at a 29-cent premium in firmer action, moving 23 cents in recent days. KC December chart support is at the 20-day at $8.18 with resistance at the upper Bollinger band at $8.80 with the fresh high at $8.87.

    MARKET SUMMARY:

    The U.S. stock market is mixed with the Dow down 55 points. The U.S. Dollar Index is 35 points higher. Interest rate products are mixed. Energies are firmer with crude up .30. Livestock trade is mixed. Precious metals are firm with gold up 2.50.

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