DTN Grain Midday: Markets Trending Higher

©Debra L Ferguson Stock Photography

Trade is flat to slightly higher across the board at midday.

CORN

Corn trade is fractionally to 1 cent higher at midday with trade continuing to grind along at the upper end of the range and hold the higher chart trend. The weekly ethanol report showed production up sharply at 5.12%, stocks were 0.58% lower, and gasoline demand was down .6%, with ethanol futures flat post report.

U.S. export values should remain pretty competitive at current US offer, with 130,000 metric tons sold to unknown today with the weekly sales report delayed until Friday. Double-crop areas in Brazil look to build some moisture in the coming days, but that is slowing planting progress. The USDA outlook forum pegged corn acres at 90 million.

On the March chart, support is at the 10-day at $3.66 with the 20-day at 3.63 below that, with the 200-day moving average at $3.76 the highest moving average and major resistance.

SOYBEANS

Soybean trade is flat to 3 cents higher at midday with trade stalling again at the upper end of the range in quiet action, with trade shaking off early weakness. Meal is narrowly mixed and oil is flat to 10 points lower.

The weather pattern looks to keep Argentina dry, and Brazil wet in the near term which is limiting downside, with podfill season fast approaching for Argentina, with the Rosario Grain exchange lowering production estimates again to 46.5 million metric tons, with USDA at 54 million metric tons on the February report. Volatility should continue here in the near term with overbought conditions persisting in the near term.

Early Brazilian harvest will continue despite being slowed by rains, causing some crop losses. The USDA outlook forum put soybean acres at 90 million metric tons. An export sale of 110,000 metric tons was announced to unknown.

On the March, support is the 10-day moving average at $10.14, with resistance the $10.39, which is the six-month high scored Tuesday.

WHEAT

Wheat trade is flat to 3 cents higher at midday with trade staying mostly range bound with moisture catching some parts of the Northern Plains overnight. The extended forecast continues to be short on moisture for the SW Plains.

The dollar is higher again today, but remains below 90 on the index. The Russian crop will continue to be watched with less cover than usual, with Black Sea values continuing to edge higher with export offers in the $206 a ton range for the most part. The outlook forum put wheat acres at 46.5 million metric tons.

On the March Kansas City wheat support is at the 20-day at $4.65 which we tested overnight with resistance the 200-day at $4.71 that we slipped below earlier in the week.

General Comments

The U.S. stock market indices are higher at midday with the Dow futures up 290 points. The interest rate products are lower. The dollar index is 15 lower. Energies are higher with crude up 0.90. Livestock trade is mixed. Precious metals are mixed with gold down $1.30.

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