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12-11 Opening Update: Grains Higher Across the Board Following Good Exports

ByGrain Market Insider

Grain Market Insider Quote Board

  • Corn futures are trading higher to start the day but remain within their 5-cent trading range. December corn is up 4-1/4 cents to $4.39 and expires tomorrow while March corn is up 3 cents to $4.47-1/4.
  • The USDA saw that corn used for ethanol in October reached 476.4 million bushels which was up 2.8% year over year and was up from 435.4 mb in September. Mills consumed 524 mb of corn which was up 2% from the previous year.
  • In Brazil, corn production is estimated at 140.96 mmt according to Bloomberg surveys. This would be up from last year’s 138.84 mmt and is due to improvements in yield.

Corn Futures Find Support: Corn futures retested technical support at the 200-day moving average following contract rollover. This support level held, and prices have rallied a small amount since. Support continues to be offered at the 200-day moving average, near 434. Structural resistance can be found near 465.

  • Soybean futures are higher again this morning and may have found some support at the $11.00 level. January soybeans are up 2-1/4 cents to $10.93-1/2 while March is up 1-3/4 cents to $11.02-3/4. January soybean meal is up $1.40 to $302.60 while Jan soybean oil is down 0.27 cents to 50.82 cents.
  • US soybean crushing s for October hit 237.1 million bushels according to the USDA. This was up 9.9% from the previous year and was up from 204.95 mb in September.
  • CFTC data from November 4 saw funds as buyers of soybeans by 60,194 contracts leaving them long 178,683 contracts. They sold 22,813 contracts of bean oil and bought 58,790 contracts of meal.

Soybeans Break Lower, Test Support: Soybean futures broke below key psychological support at 1100, and have now started to test technical support at the 50-day moving average, near 1083. A secondary point of support can be found at the 100-day moving average, near 1051. The 1100 psychological level will now serve as key technical resistance.

  • All three wheat classes are trading higher with March Chicago wheat up 2-3/4 cents to $5.32-1/4, KC wheat up 2-3/4 cents to $5.26, and Minn wheat up 3 cents to $5.78-3.4.
  • Monday’s WASDE report saw US ending stocks for wheat unchanged at 901 mb. World ending stocks were up to 274.9 mmt from 271.4 mmt in November.
  • CFTC data as of November 4 saw funds as buyers of Chi wheat by 4,520 contracts leaving them short 70,613 contracts. They bought back 9,254 contracts of KC wheat leaving them short 42,454 contracts.

Chicago Wheat Tests Support: Wheat futures have started to retest technical support at the 200-day moving average, near 534. Should this support break, a secondary point of support can be found at a band of moving averages near 525. Resistance can be found at the most recent high, near 561.

KC Wheat Consolidates: KC wheat has started a consolidation phase after breaking below technical support at the 200-day moving average. The 200-day moving average now serves as resistance, near 533. Support can be found at a band of moving averages, near 514.  

Spring Wheat Consolidates Spring wheat futures have started a consolidation phase after contract rollover propelled prices above the 100-day moving average. The 100-day moving average now serves as support, near 571. Resistance can be found at the 200-day moving average, near 590.

Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.

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