DTN Grain Midday: Corn and Wheat Higher

Soybean harvest. ©Debra L Ferguson

Corn, Wheat Higher at Midday

Corn is 1 to 2 cents higher, soybeans are 6 to 8 cents lower, and wheat is 2 to 7 cents higher.

The U.S. stock market is firmer with the Dow up 240 points. The dollar index is 15 points lower. Interest rate products are lower. Energies are mixed with crude down $0.20. Livestock trade is mostly lower. Precious metals are mixed with gold down $5.

CORN

Corn trade is 1 to 2 cents higher with trade putting in new highs again overnight before fading a bit during the day session with spread trade flattening out. Ethanol margins remain range bound with unleaded remaining at a discount to ethanol. Basis should see pressure this week with more bushels coming in to town but have held up well so far this month.

Weekly export sales were disappointing at 655,200 with 128,000 metric tons sold to Mexico on the daily wire. On the December contract resistance is the fresh high at $4.08 with support the 20-day at $3.81.

SOYBEANS

Soybean trade is 6 to 8 cents lower at midday with softer spread trade with another couple of sales to unknown of 175,000 and 216,150 metric tonS. Meal is $4.50 to $5.50 lower and oil is flat to 10 points lower. The ral remains in the lower end of the range ahead of South American planting with better moisture for Brazil expected this week and next, while Argentina continues to hold onto supplies limiting meal availability. Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels.

Weekly export sales remain very strong at 2.63 million metric tons, 155,200 of meal, and 1,400 of oil. The November chart has resistance at the fresh high at 10.79 3/4 with support the 20-day at 10.30.

WHEAT

Wheat trade is 3 to 8 cents higher at midday with Chicago action leading as it builds a front-month inverse after the strong finish yesterday. The ruble action continues to favor Russia a bit in the export markets but their domestic prices are now elevated. Kansas City is at a 66-cent discount to Chicago with spreads holding near the recent highs, while Minneapolis is back to 66 cent discount with weaker action and fresh highs scored. Rains look to be concentrated to the eastern growing areas in the short term.

Weekly export sales were inline with recent weeks at 528,500 metric tons. Kansas City December chart resistance is the fresh high at $5.52 3/4, and support is the old high at $5.15.

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