DTN Grain Midday: Wheat Leads Firmer Trade

Hand full of mature wheat heads. Photo: K-State Research and Extension - Creative Commons

Firmer trade at midday, led by wheat.

CORN

Corn trade is 2 to 2 3/4 cents higher at midday with trade finding buying with supportive trade and Brexit news overnight. Harvest will remain slow but should show progress through the end of the week before wetter weather returns to the east with beans getting more attention this week.

The weekly ethanol report showed production 8,000 barrels per day, and stocks 873,000 barrels, with ethanol futures slightly higher but still well of the recent highs. Basis remains flat to weaker with anticipation of more inbound bushels soon. South American corn planting but is running behind normal.

Weekly export sales will be delayed until Friday. On the December contract support is at the 10-day at $3.91 which we are testing overnight, then the 20-day at $3.85, and resistance the upper Bollinger Band at $4.02.

SOYBEANS

Soybeans are 4 to 6 cents higher with trade bouncing on the positive trade hopes and Brexit, but following the pattern of being unable to hold the recent highs. Meal is 2.00 to 3.00 higher and oil is 5 to 15 points higher. Crush margins remain solidly positive. The real is back to the low end of the range vs. the dollar but reversed late yesterday and is gaining this morning.

Bean basis is should see pressure as combines roll through midweek before rains return. South America should make more progress this week and into the second half of the months with some weather issues remaining and planting pace solidly behind.

On the November chart support is the 10-day at $9.27 with the upper Bollinger Band at $9.48 as resistance.

WHEAT

Wheat trade is 3 to 8 cents higher with strength carrying over from yesterday with the Chicago trade leading but we have faded a bit at midday. The Chicago/Kansas City December spread is 90 cents with choppy action continuing with mostly steady to slightly wider. Remaining spring wheat will likely not be cut at this point.

The corn/HRW spread has widened back to 36 cents from 13 cents at the recent low, working wheat back out of rations. Export action continues to be dominated by Black Sea origin with more sales to Egypt and neighboring countries yesterday.

The December Kansas City chart support is the $4.07-4.15 area where the 10-, 20-, and 50-day moving averages are clustered with the 100-day at 4.40 the next level up with the upper Bollinger Band right at midday trade at $4.28.

General Comments

The U.S. stock market is flat with the Dow up 10. The dollar index is 38 lower. Interest rate products are firmer. Energies are weaker with crude down $0.20. Livestock trade is weaker. Precious metals are firmer with gold up $3.80.

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