DTN Grain Close: Drought Concerns Help Oats, Winter Wheat End Higher

March oats were up 5 1/2 cents and March K.C. wheat was up 2 1/2 cents Thursday after the U.S. Drought Monitor showed another week of dry conditions in the western and Southern Plains. March soybeans were up 4 1/4 cents with dry weather in Argentina still a mild concern.

 

Midday: Soybeans and wheat are firmer, corn near unchanged at midday.

CORN

Corn trade is fractionally lower at midday with trade working to consolidate the gains from yesterday. The weekly ethanol report showed production at 6.53% higher, with stocks .11% higher and gasoline demand down 1.63% with a jump in ethanol exports.

Basis has been flat to a little better with carry steady to slightly stronger to start the week with warmer weather likely boosting movement towards the weekend. Warmer weather should help to throttle back livestock feeding coming forward. The weekly export sales are delayed until Friday.

On the March chart support is the 50-day at $3.52 we closed above yesterday, with the 20-day at $3.50 below that, and resistance at the 100-day at $3.58.

SOYBEANS

Soybean trade is 2 to 4 cents higher at midday with trade working to consolidate above the support levels found yesterday in the low $9.60’s on the March. Meal is $2 to $3 higher and oil is 10 to 20 points lower. South American weather looks to continue the recent pattern in the near term with the north and south dry, and the middle wet.

Basis and carry remains mostly sideways. The export wire was quiet again today, with only new crop sales on the wire so far this week.

On the March, support is the 10-day and 20-day $9.64 that we have tested this morning and resistance the 50-day at $9.84.

WHEAT

Wheat trade is flat to 3 cents higher with winter wheat the midday leader. Warmer weather should be the rule in the near term, but moisture will likely remain short in the near term for much of the plains. The dollar remains below 91 on the index with the trend still lower, with rallies being sold. The gap between US and Russian origin has narrowed but remains more favorable to Russia.

On the March Kansas City contract, chart support is the lows at $4.10, with the weekly low of $4.21 becoming nearby support with the 20-day at $4.29 as the first level of resistance with the 50-day at $4.30 above that, which we have tested this morning.

Weather

Markets

The Latest