DTN Grain Midday: Wheat, Soybeans Lead as Corn Turns Lower

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Corn is 2 to 3 cents lower; soybeans are 2 to 4 cents higher, and wheat is 1 to 3 cents higher.

CORN

Corn trade is 2 to 3 cents lower with trade continuing to work right around the $3.89 area. Harvest should pick up momentum again as the midweek cold front exits with downed corn presenting an issue in many areas. Ethanol margins narrowed with the firmer corn values and flat ethanol futures but remain positive. Basis should see more pressure into the weekend as harvest progresses. South America looks to remain in the same weather pattern for now as planting continues with dry pockets persisting.

On the December contract, support is the recent low at $3.82, then the lower Bollinger band the next level of support at $3.80 with trade nearing oversold conditions. Chart resistance is at the 20-day at $3.89, which we are trading around this morning, then the $4.01 area, where we find the 200-day moving average, and near the 2 1/2-month high.

SOYBEANS

Soybeans are 3 to 4 cents higher with trade finding light buying at midday as January becomes the front month. Meal is flat to $1.00 higher, and oil is 10 to 20 points higher. Crush margins remain solidly positive, along with oversold conditions in place for now. The real scored new highs again as the U.S. gains export competitiveness vs. Brazil.

Bean basis should see pressure as combines continue to roll with the homestretch of harvest nationally likely by the end of the week. South America should make more progress this week with dry pockets persisting with planting mostly caught up after the slow start. USDA announced 132,000 metric tons of soybeans sold to China.

On the January char, support is the 200-day and lower Bollinger band at $9.26 with the 20-day above the market at $9.41.

WHEAT

Wheat trade is 1 to 2 cents higher with trade still working the lower end of the range and trying to ease oversold conditions again with light buying during the day session. The Chicago/KC December spread is 89 cents with slight narrowing action continuing, and now about a dime from the recent highs.

The corn/hard red winter wheat spread has widened back to 31 cents, with wheat working more into rations with the break this week. Export action continues to be dominated by Black Sea origin with Egypt active, but their prices have firmed while Australia remains dry near term.

The December KC chart support is the 20-day at $4.18, which we remain just above, then the lower Bollinger band at $3.98 below that with the upper Bollinger band at $4.22 as resistance, which we have tested this morning.

General Comments

The U.S. stock market is firmer with the Dow up 240. The dollar index is 15 lower. Interest rate products are firmer. Energies are firmer with crude up 0.95. Livestock trade is mixed. Precious metals are mixed with gold down $2.20.

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