DTN Grain Close: Corn Survives Bearish Day

March corn ended up 1 3/4 cents Thursday, a small bullish victory on a day when January soybeans were down 4 cents and all three wheats finished lower. March oats and soybean meal were also higher, while January soybean oil dropped over a half cent.

 

Midday: Mixed trade at midday, with soybeans at the lows of the day.

CORN

Corn trade is 2 to 3 cents higher at midday with trade looking to sustain light buying to the close after seeing support evaporate earlier in the week. Ethanol margins remain stable to better with the rebound in unleaded, and tighter stocks on hand.

Basis has held up well with the slow pace of harvest so far with slow action continuing. South America should see areas of improvement as planting progresses, especially in Brazil with no major issues on the horizon for now. Weekly export sales showed some improvement to 788,000 metric tons, with another 106,000 metric tons on the daily wire.

On the December contract support is the $3.65 3/4 lows from Wednesday along with the lower Bollinger Band at $3.63, with resistance the 20-day at $3.78, along with heavily oversold conditions.

SOYBEANS

Soybeans are 2 to 3 cents lower with early short covering giving way to light selling again with little fresh news to encourage buying beyond profit taking. Meal is $1.00 to $2.00 higher, and oil is 40 to 50 points lower. The ral remains at the lows with planting hitting the homestretch in Brazil.

Bean basis has moved to a more sideways trend short term with pockets of firmness showing up at crushers. The weekly export sales were good at 1.52 million metric tons, with 196,400 of meal, and 39,100 of oil.

On the January chart support is the lower Bollinger Band at $9.01, which we are just above with resistance well above the market at $9.37 where the 20-day moving average, along with oversold conditions.

WHEAT

Wheat trade is 1 to 4 cents lower at midday with Kansas City holding up the best as Chicago reverses lower. The Chicago/Kansas City December spread is 87 cents with choppy action to start the week, Chicago also holding a 14 cent premium to Minneapolis.

The corn/hrw spread has widened back to 59 cents, pushing wheat further from the feed bunk. The weaker dollar could help more if sustained vs. world values this week. Export business will be watched with more Mediterranean tenders going out this week with weekly sales in line with recent weeks at 437,700 metric tons of wheat. The extended forecast hints at some relief for the drier western areas with late planted wheat struggling.

The December Kansas City chart support is the lower Bollinger Band at $4.13, with resistance the 20-day at 4.23 which we need a second close above and then the recent highs at $4.38.

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