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DTN Midday Grain Comments 12/02 10:52

12/02/2022


DTN Midday Grain Comments 12/02 10:52

Corn, Wheat Lower, Soybeans Higher Midday Friday

Corn trade is 8 to 9 cents lower; beans are 9 to 10 cents higher and wheat
is 10 to 18 cents lower.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

Corn trade is 8 to 9 cents lower; beans are 9 to 10 cents higher and wheat
is 10 to 18 cents lower. The U.S. stock market is weaker with the Dow off 135
points. The U.S. Dollar Index is 0.30 higher. Interest rate products are mixed.
Energies are weaker with crude off $0.20 and natural gas off $0.15. Livestock
trade is mostly higher. Precious metals are mixed with gold off $13.00.

CORN:

Corn trade is 8 to 9 cents lower at midday Friday with trade fading back to
fresh lows with risk-off sentiment and little fresh bullish news. Trade is
filling the $6.38 gap on the December contract as it continues in delivery. The
daily export wire will be watched to see if sales pick up again with only a
little action this week. Ethanol margins remain rangebound with corn values and
driving demand expected to slow further until closer to Christmas travel. Fall
fertilizer should be able to make better progress short term as temps fluctuate
near term. Basis has remained steady as transportation issues get worked on
with the West starting to soften more as end users build coverage. Dry weather
in Argentina is raising some concern for their crop short term. On the March
chart, trade is just above the lower Bollinger Band at $6.52 with the fresh low
at $6.54 1/2 as well and the 20-day just above current action at $6.67.

SOYBEANS:

Soybean trade is 9 to 10 cents higher at midday as trade works to find
footing after washing out Thursday on concerns about how aggressive biodiesel
expansion will be coming forward, along with major weather issues limited at
the moment in South America as Brazil offsets Argentina issues for the moment.
Meal is $2.00 to $3.00 higher and oil is 2.20 cents to 2.40 cents lower after
the limit down move Thursday. Basis has held together well with little change
in recent days. The daily export wire has been limited in recent days with
China demand likely to be an ongoing concern with the continued shutdowns and
unrest going forward. On the January chart, trade is working back below the
20-day at $14.48 with the upper Bollinger Band above current action at $14.76,
as well as the fresh high at $14.78, and further support the lower Bollinger
Band at $14.15.

WHEAT:

Wheat trade is 10 to 18 cents lower at midday with trade fading back to
fresh lows again Friday morning as long liquidation continues with spring wheat
again taking the lead so far and action firming off the lows into midday. The
dollar fading from the highs should add some support if we can remain at the
lower end of the range with the post jobs report strength fading. The Plains
look to remain mostly dry short term with cooler and wetter potential the
second week. Southern Hemisphere harvest will be moving forward soon with
quality issues in Australia and drought losses in Argentina. Matif wheat values
have slipped as well. On the chart, KC March action has faded well below the
20-day at $9.26 and the lower Bollinger Band at $8.74 is further support with
the fresh low at $8.60 1/4 scored Friday morning just below that.

David Fiala can be reached at dfiala@futuresone.com

Follow him on Twitter @davidfiala




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