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DTN Midday Grain Comments     12/02 10:59

   Wheat, Corn Higher at Midday

   Corn is 3 to 4 cents higher, soybeans are 1 to 3 cents lower, and wheat is 7 
to 13 cents higher.

David M. Fiala
DTN Contributing Analyst

   The U.S. stock market is flat to weaker with the Dow down 10. The dollar 
index is 9 points lower. Interest rate products are mixed. Energies are firmer 
with crude up $0.85. Livestock trade is flat to slightly weaker. Precious 
metals are mixed with gold up $10.00.


   Corn trade is 3 to 4 cents higher at midday with trade bouncing back from 
overnight selling with support from strength in wheat and firmer spread action 
while the export wire remains quiet. Ethanol margins continue to deteriorate 
with the rebound in corn, with production falling slightly by 16,000 barrels 
per day, while stocks continue to grow as demand decline rising by 374,000 
barrels. Basis remains generally strong. On the March contract support is the 
lower Bollinger Band at $4.10 with the 20-day at $4.24 becoming resistance 
which we are just below at midday.


   Soybean trade is 1 to 3 cents lower at midday with trade surging back from 
overnight weakness with flat to soft spread action as the export wire remains 
quiet, and overnight technical issues that plagued trade seemingly resolved. 
Meal is flat to $1.00 lower and oil is flat to 10 points higher. South America 
has rains moving into much of central and southern Brazil and Argentina short 
term, with dry pockets and high temps still a worry with the second week still 
potentially showing broader improvement. Basis remains strong as we continue to 
work to max out our logistics capacity to ship the needed export bushels with 
freight issues remaining in play. The January chart has resistance at the fresh 
high at the fresh high at 12.00 scored last week, with the upper Bollinger Band 
at $12.16, with support the 20-day at $11.55 which we are back above at midday 
with the lower Bollinger Band at 10.92 below that.


   Wheat trade is 7 to 13 cents higher with trade surging back during the day 
session with winter wheats leading as the overall rangebound action continues. 
The dollar remains at the lower end of the range but hasn't shifted export 
competitiveness yet. World export tenders continue to go to Black Sea origin 
for the most part, with little change in overall conditions there going into 
dormancy. The western plains look to mostly remain dry short term. Kansas City 
is at 39-cent discount to Chicago on the March with active trade continuing, 
with Minneapolis at -32. Kansas City March chart resistance is the 20-day at 
$5.57 which we failed to hold late last week, and support is the lower 
Bollinger Band at $5.41, which we tested before bouncing.

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser.
He can be reached at
Follow him on Twitter @davidfiala


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