DTN Midday Grain Comments 12/22 11:22
Grain Trading Mostly Quiet at Midday
Grain trade is flat to higher at midday with light chart buying.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are flat to higher with the Dow futures up 90
points. The interest rate products are higher. The dollar index is 7 lower.
Energies are lower with crude $1.70 lower. Livestock trade is mixed with cattle
higher and hogs lower. Precious metals are flat to lower with gold down $13.
Corn trade is 1 to 2 cents higher in quiet midday trade. The weekly export
inspections were okay at 790,145 metric tons. Some export business was seen
last week, and 166,600 metric tons of corn were announced as sold to unknown.
Ethanol margins are back under pressure today and now around break even after
trading at a six-month high just over a month ago. The March corn chart items
remain the same with support at $4.05 at the 10-day moving average and
resistance at the $4.21 200-day moving average. The daily range has been mixed
and only around 6 cents illustrating holiday type trade. The trading schedule
for next week will be the market closing at noon cst on Wednesday then open at
8:30 Friday morning with a normal Friday close.
Soybean trade is 4 to 9 cents higher at midday in fairly quiet trade, while
meal is $5 to $6 higher, and oil is flat to 10 points lower. The weekly export
inspections were strong again at 2.2 million metric tons. South American
weather looks to generally remain ok in the near term. January chart support is
at the $10.19 100-day then the $10.13 50-day. Resistance is at the $10.35
10-day moving average which we are just above at midday, then the recent high
at $10.60. Any change in South American weather should give us direction next
week, without a change sideways action appears to be in the cards for our week
of Christmas. The market came close to the 100-day of Friday and if we go there
this week we should expect sizeable sell stops under it.
Wheat trade is narrowly mixed at midday after early gains as trade looks to
continue consolidating after the selloff on Friday, and Russian concerns are
still encouraging commercial buying. Weather items are limited at this point
although future winter kill threats and dryness can develop as we officially
move into winter in the northern hemisphere. The weekly export inspections were
442,055 metric tons. The dollar remains near the fresh multiyear highs scored
on Friday. On the March Kansas City chart support is down at the $6.50 10-day
with resistance at the $6.81 200-day.
David Fiala is a DTN contributing analyst and the president of FuturesOne
and a registered Trading Adviser.
David Fiala can be reached at email@example.com
Follow David Fiala on Twitter @davidfiala
Copyright 2014 DTN/The Progressive Farmer. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up