DTN Midday Grain Comments 11/27 10:57
Corn, Bean, Wheat Trade Lower at Midday Monday
Corn trade is 7 to 8 cents lower; beans are 3 to 5 cents lower and wheat
trade is 10 to 18 cents lower.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is weaker with the S&P 5 points lower. The dollar
index is flat. Interest rate products are firmer. Energies are weaker with
crude off $0.35 and natural gas off $0.07. Livestock trade is weaker. Precious
metals are firmer with gold up $6.
Corn trade is 7 to 8 cents lower at midday to start the week with trade
washing to fresh lows with the broad risk-off sentiment continuing from last
week. Ethanol margins should stay rangebound with the weakness in corn and
unleaded. Basis should remain steady for the most part short term with most
users getting ready to roll to the March contract ahead of delivery starting
The daily wire was quiet to start the week with weekly export inspections
soft for the holiday week at 406,680 metric tons. South American weather should
see little change in the immediate term from the recent pattern. On the
December chart, the 20-day average at $4.72 is nearby resistance which we
failed from last week before fading again with the $4.50 area the next level
that trade will watch to hold.
Soybean trade is 3 to 2 cents lower with two-sided action so far today with
risk-off selling and better product action battling with trade watching the
South American forecast into December. Meal is $3.50 to $4.50 higher and oil is
20 to 30 points higher.
The daily wire was quiet to start, with weekly export inspections a little
soft at 1.443 million metric tons. Basis should remain flat short term. The
South American weather pattern will be watched for sustained moisture into
December as we get deeper into the growing season. The January soybean chart
has resistance at the 20-day at $13.50 that we fell through on Friday, with the
lower Bollinger Band at $13.03 as support.
Wheat trade is 10 to 18 cents lower at midday with action washing into new
lows again with KC action trying to lead but the overall risk-off selling and
lack of fresh bullish news keeps pressure on the market. The Plains saw good
snow cover in places as the crop heads towards dormancy with a bit of a warm-up
possible into early December.
World weather has shown little change in recent days with little concern in
the Northern Hemisphere for now. Matif wheat is lower as well. Weekly export
inspections remain soft at 276,585. On the KC December Chart, support is at the
fresh low of $5.88 1/4 with the 20-day moving average at $6.32 as resistance.
David Fiala can be reached at firstname.lastname@example.org.
Follow him on X, formerly Twitter, @davidfiala.
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