DTN Grain Midday: Broad Selling Across the Board

Mississippi River Port ©Debra L Ferguson Stock Photography

CORN

Corn trade is 8 to 9 cents lower at midday with trade falling back to the lower end of the recent range with broad selling in ags starting overnight. Ethanol margins remain tight, with futures back at the lows with the large stocks build, and imports yesterday, with the potential of fresh export business as part of the trade deal needed soon to give a boost ahead of driving season.

US weather looks to be more active to the east in the U.S., allowing for more movement west for now, while South America looks to make short term progress. Basis has remained sideways. Weekly export sales showed some improvement to 784,400 metric tons of old crop, and 207,000 of new.

On the March contract support is $3.77 recent low, with the lower Bollinger Band at $3.83 now resistance.

SOYBEANS

Soybeans trade is 4 to 6 cents lower at midday with trade firmly in show me mode post trade deal as we filled the first December gap area at $9.27 overnight. Meal is flat to $1.00 higher, and oil is 25 to 35 points lower. We did see 180,000 of meal and cake sold to Philippines. The Brazilian real remains very cheap as well.

American weather remains within the recent pattern for soybeans as well. Basis has remained firm at processors with the strong crush margins. Weekly export sales were a mixed bag at 711,500 metric tons, 36,200 of oil, and 375,200 of meal.

The March chart support is at the December gap at $9.15 after trade fell below the $9.27 gap overnight.

WHEAT

Wheat trade is 4 to 11 cents lower with widespread selling this morning as trade pulls back from the fresh highs yesterday with overbought conditions with Minneapolis holding up the best. Cold threats remain limited for the plains with most of the moisture staying to the east, with western snow cover remaining limited, while Russia has been warmer and drier than usual along with usual Russian governmental action today.

Spread action is steady to a little wider, putting Kansas City at a 80 cent discount to Chicago, while Minneapolis is back to a 14 cent discount. Weekly export sales improved to 650,600 metric tons of old crop, and 59,700 of new.

The March Kansas City chart support is the 20-day moving average at $4.78, with resistance the upper Bollinger Band at 5.03.

General Comments

The U.S. stock market is firmer with the Dow up 170. The dollar index is 15 points lower. Interest rate products are weaker. Energies are weaker with crude down $0.50. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold $6.50 higher.

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