DTN Midday Grain Comments     11/29 10:51

   Grain Futures Headed Lower Midday Monday

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

David M. Fiala
DTN Contributing Analyst

   MARKET SUMMARY:

   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.

   CORN:

   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.

   SOYBEANS:

   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:

   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.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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