DTN Grain Midday: Wheat, Corn Move Higher

Photo: University of Tennessee

Row crops mixed at midday, and wheat firmer.

CORN

Corn trade is 1 to 2 cents higher to open the week with light two-sided action at midday. Ethanol margins will remain poor which should continue to work weekly production runs lower deeper into winter with ethanol futures edging marginally higher today.

The weekly export inspections are expected to be in the range of 700,000 to 1.0 million metric tons when released tomorrow due to the holiday. The weekly crop progress report should show harvest entering the final stretch. Basis will likely remain fairly sideways in the near term.

On the December chart support is at the 10, 20, and 100-day moving averages in the $3.67-3.70 area with resistance the recent $3.79 high.

SOYBEANS

Soybean trade is 3 to 5 cents lower at midday with rangebound action continuing to start the week. Meal is flat to $1 higher, and oil is 5 to 15 cents higher.

Crush margins remain strong, which is probably the biggest supportive factor as the export program remains slow, and South America is off to a good start. The weekly export inspections are expected to be in the range of 800,000 to 1.1 million metric tons range when released tomorrow. The weekly crop progress should show harvest effectively complete.

Support is found at the $8.75 area where we find the 10, 20, and 100-day moving averages. Resistance is up at $9 then the $9.06 3-month high.

WHEAT

Wheat trade is 3 to 13 cents higher at midday with Chicago trade the upside leader and Kansas City the laggard. Euro prices bounced with cold stress reported in France. Kansas City was the weakest the past two sessions with nothing supportive on the WASDE report which has the market again testing the lows.

Wheat is back to near oversold conditions which should trigger some support. The dollar scoring new highs again overnight will limit upside again. Weekly export inspections are expected to be in the range of 400,000 to 600,000 metric tons. The weekly crop progress report will be expected to show good to excellent around 50%, with planting and emergence still lagging.

On the December Kansas City chart we have support at the lower Bollinger Band at $4.82, and resistance the 10-day at $4.98.

General Comments

The U.S. stock market indices are weaker with the Dow futures down 450. The interest rate products are closed for Veterans Day. The dollar index is 60 higher. Energies are firmer with crude up $0.55. Livestock trade is mixed. Precious metals are lower with gold down $4.10.

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