DTN Grain Midday: Markets Move Lower

©Debra L Ferguson Stock Photography

Row crops are the down side leader at midday.

CORN

Corn trade is flat with trade seeing choppy two-sided trade overnight up to midday. The South American recent weather pattern remains intact with a mix of excessive rain and pockets of dryness with some potential to improve. Ethanol profitability will remain poor with futures flat this morning.

The government partial shutdown is expected to continue to limit news. Trade talks with China has raised the specter of potential fresh corn exports with good progress reported to have been made with a pause in negotiations for now with Chinese delegations expected in DC at the end of the month.

The weekly export inspections were good at 1.013 million metric tons.

On the March chart support is at the $3.77 1/2 100-day with the lower Bollinger band at $3.72 below that, and the 10,20, and 50-day moving averages clustered around $3.80 as resistance.

SOYBEANS

Soybean trade is 5 to 7 cents lower at midday with trade fading back to support to open the week with concern about Chinese demand offsetting weather for the moment. Meal is $3.00 to $4.00 lower, and oil was flat to 10 points lower.

South America weather items remain in the recent weather pattern with harvest going early amid heat and pockets of dryness in Brazil with generally disappointing yields so far, and excessive rain potential in Argentina with potential improvement in the extended forecast.

Chinese trade data continues to disappoint, raising concerns about demand coming forward. Forecasts are being monitored closely.

The weekly export inspections were better at 1.085 million metric tons.

March chart support is at the 50-day at $9.05 which we are testing at midday then the lower Bollinger band at $8.83 with resistance at the $9.29 200-day then the upper Bollinger band at $9.36.

WHEAT

Wheat trade is flat to 5 cents lower at midday with choppy trade ongoing with action struggling to pick a direction. The dollar remains near three-month lows, which should add support with more sideways trade building now.

Southern Hemisphere harvest will continue in the near term. North American winter wheat should see a cool down this week, with snow cover expected in front of the cold snap. Russia domestic prices will be watched slowly.

The weekly export inspections were good at 545,804 metric ton range.

On the March KC chart support is the 10-day at $5.00, then the $4.87 1/2 lower Bollinger Band. Resistance is at the 50-day at $5.05 3/4 which we couldn’t hold above today then the upper Bollinger band at $5.23.

General Comments

The U.S. stock market indices are weaker today with the Dow down 90. The interest rate products are mixed. The dollar index is 10 points lower. Energies are mixed with crude down $0.15. Livestock trade is weaker. Precious metals are mixed with gold up $1.00.

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