DTN Grain Midday: Corn, Soybeans Lower

Soybean harvest. ©Debra L Ferguson

Corn is 2 to 3 cents lower, soybeans are 5 to 6 cents lower and wheat is 1 to 6 cents higher.

MARKET SUMMARY:

The U.S. stock market is firmer with the Dow up 425 points. The dollar index is 25 points lower. Interest rate products are weaker. Energies are firmer with crude up $2.00. Livestock trade is mixed. Precious metals are mixed with gold off $35.00.

CORN:

Corn trade is 2 to 3 cents lower at midday with flat spread action and broad selling early. The daily wire was quiet on the export front Tuesday. Ethanol remains within the recent range with a focus continuing on short-term demand and a boost from strength in the energy complex.

Basis remains generally strong. On the December contract, support is the 20-day at $4.12 with the lower Bollinger band at $3.94 as the next level down with the fresh high scored at $4.29 3/4 scored Monday with the upper Bollinger band at $4.31 above that.

SOYBEANS:

Soybeans trade is 5 to 6 cents lower at midday with little change to weather patterns and some talk of cancelations by Chinese crushers due to a poor margin environment with trade well off the lows at midday. Meal is flat to $1.00 higher, and oil was 0.40 to 0.50 cent lower. The daily wire has remained quiet for soybeans as well. South America has some dry pockets building with northern Brazil looking to see more moisture short term, with southern Brazil one-third very dry the next week and wetter action expected in Argentina after recent dryness.

Basis remains strong as we continue to work to max out our logistics capacity to ship the needed export bushels with freight issues remaining in play. The January chart has resistance at the fresh high at the fresh high at $12.00 scored Monday, with the upper Bollinger band at $12.22, with support the 20-day at $11.25.

WHEAT:

Wheat trade is 1 to 6 cents higher with range-bound action continuing with some rain on the Plains. The dollar has turned lower again adding support. World export tenders continue to go to Black Sea origin for the most part, with little change in overall conditions there. The western plains look to see some potential improvement with the last progress report showing good to excellent off 3% to 43%, and 21% poor to very poor, up 3%.

KC is at 47-cent discount to Chicago with spreads remaining rangebound, with Minneapolis at -53 cents. KC December chart resistance is the 20-day at $5.52, which we are just above overnight, and support is the lower Bollinger band at $5.40.

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