DTN Midday Grain Comments     12/05 10:52

   Corn, Wheat Lower, Soybeans Higher Midday Monday

   Corn trade is 4 to 5 cents lower; beans are 5 to 6 cents higher and wheat is 
8 to 17 cents lower. 

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn trade is 4 to 5 cents lower; beans are 5 to 6 cents higher and wheat is 
8 to 17 cents lower. The U.S. stock market is weaker with the Dow down 280 
points. The dollar index is 60 points higher. Interest rate products are 
weaker. Energies are weaker with crude down 0.80 and natural gas down 0.50.  
Livestock trade is mostly higher. Precious metals are weaker with gold down 
23.00.

CORN:

   Corn trade is 4 to 5 cents lower at midday with selling returning after 
initial stronger trade as oversold conditions and demand concerns persist. The 
daily export wire will be watched to see if sales pick up again with little 
action last week and weekly inspections remaining soft at 524,313 metric tons. 
Ethanol margins remain rangebound with corn values and driving demand expected 
to slow further until closer to Christmas travel with sliding unleaded values 
crimping blender margins. Fall fertilizer application should be about wrapped 
up. Basis has faded as transportation issues get worked on with the West 
starting to soften even more as end users build coverage. Dry weather in 
Argentina is raising some concern for their crop short term with some relief 
potentially on the horizon. On the March chart, trade is just below the lower 
Bollinger Band at 6.50 with the fresh low at $6.41 and the 20-day above current 
action at $6.65.

SOYBEANS:

   Soybean trade is 5 to 6 cents higher at midday with trade working to build 
on the Friday rebound. Trade is still away off the recent highs, with Brazil 
production estimates moving higher, while Argentina sees more short term 
concern. Meal is 8.00 to 9.00 higher and oil is 120 to 130 points higher. 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. 130,000 metric 
tons were sold on the daily wire and weekly export inspections were a little 
softer at 1.722 million metric tons. On the January chart, trade is working 
just above the 20-day at $14.42 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 8 to 17 cents lower with early strength giving way to fresh 
lows again oversold conditions persist with little other changes worldwide. The 
dollar found strength again after early weakness. 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, reducing their premium. On the chart, KC March action has faded well 
below the 20-day at $9.18 and the lower Bollinger band at $8.68 is further 
support with the fresh low at 8.51 scored this morning just below that.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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