DTN Grain Midday: Futures Headed Lower

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    Corn trade is 8 to 11 cents lower, beans are 7 to 8 cents lower and wheat is 10 to 20 cents lower.


    Corn trade is 8 to 11 cents lower at midday Monday with firm spread trade as the December contract prepares to go into delivery and action fading back from the upper end of the range. Weekly export inspections were OK at 766,063 metric tons.

    Ethanol margins have narrowed with the energy move but demand will remain strong through Christmas. Basis should remain steady to firmer short term with fall field work likely to make good progress where supplies are available.

    On the December contract, we have resistance at the recent high of $5.89, with the upper Bollinger Band at $5.91 and the 20-day moving average as support at $5.71, which we continue to hold above.


    Soybean trade is 7 to 8 cents lower at midday with trade failing to hold overnight gains and fresh bullish news limited as product momentum slips again. Meal is $4.00 to $5.00 lower with oil is 0.40 cent to 0.50 cent higher. South America looks to continue short-term progress with issues remaining limited for now, while the extended forecast remaining mixed for crop development short term.

    Crush margins remain very strong for the moment as well even as the meal rally slows, pulling back sharply from the recent highs. Weekly export inspections remained solid at 2.143 million metric tons. On the January soybean chart, support is the 20-day at $12.45, which we are testing at midday, with the $12.84 fresh high as the next round up from there, with the upper Bollinger Band above that at $12.94.


    Wheat trade is 10 to 20 cents lower at midday with early gains fading again as overbought conditions ease. Australia is expected to see better harvest conditions and good yields, albeit with quality reduced from milling grain on some from the recent rains, with little change on Russian export outlooks short term.

    The dollar is just below 97 points, continuing to consolidate near the highs that could eventually become a headwind. Weather in the Plains looks little changed short term with longer-term dry concerns for the Southern Plains heading toward dormancy.

    Spring wheat is firmer versus Chicago, moving the premium to 2.21 cents, with KC at a 42-cent premium in firmer action, moving 38 cents in recent days. Weekly export inspections slumped a bit at 250,651 metric tons. KC December chart support is at the 20-day at $8.26 with resistance at the upper Bollinger Band at $8.89 with the fresh high at $8.87.


    The U.S. stock market is firmer with the Dow up 130 points. The U.S. Dollar Index is 0.25 higher. Interest rate products are mostly lower. Energies are mixed with crude up $2.55. Livestock trade is mixed. Precious metals are mixed with gold down $1.00.

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