DTN Grain Close: Markets Fire Back

The Port of Rosedale - Rosedale, Mississippi - Mississippi River ©Debra L Ferguson Stock Photography

One day after grains and other commodities were pushed lower by panic selling in the stock market, corn, soybeans and all three wheats rebounded higher Tuesday, with most contracts erasing Monday’s losses. The Dow Jones Industrial Average helped to ease investor concerns, showing a more modest loss in the early afternoon.

Midday: Soybeans are seeing double-digit gains at midday recovering some of the Friday-into-Monday losses.

CORN

Corn trade is 2 to 4 cents higher at midday with trade testing the recent highs with firmer action and another round of better exports. Ethanol margins are under pressure in the near term with the energy complex starting pressure blender margins a bit and ethanol futures softer this morning.

Basis is expected to remain mostly steady with milo likely to see the most pressure on the China tariff talk. The daily wire has been very active with trade sales of 120,000 metric tons sold to Japan, and 105,000 metric tons to unknown.

On the March chart, support is now the 100-day at $3.57 with the 20-day at 3.55 below that, with the 200-day moving average at $3.76 the highest moving average resistance after the $3.62 3/4 high printed today.

SOYBEANS

Soybean trade is 8 to 12 cents higher at midday with trade trying to firm back from the new low scored overnight. Meal is $5 to $6 higher and oil is 10 to 20 points higher.

South American weather is expected to keep Brazil wet and Argentina drier until the end of the week, when rains are expected to tick up but the extended forecast leans drier for Argentina. The Brazilian real has slipped vs. the dollar in recent days, likely keeping the export pace restrained.

On the March, support is the overnight low at $9.67, with resistance at the 20-day at $9.77, which we have edged back above at midday.

WHEAT

Wheat trade is 3 to 6 cents higher at midday with Kansas City wheat leading the market. The Plains look like they stay mostly dry in the near term, with crop conditions likely seeing continued stress. The extended forecast may have some relief, but overall continues to look limited for the hard red wheat areas with spring drawing closer.

The Black Sea area has seen some stressful weather for winter as well. The dollar is just below 90 on the index, with trade mostly holding gains even with the variability in the outside markets. Jordan pulled its wheat tender on higher prices again.

On the March Kansas City contract, chart support is the overnight low at 4.55 with the 200-day the next level of resistance at $4.73.


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