DTN Grain Midday: Wheat, Corn Move Higher

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Corn is 3 to 4 cents higher, soybeans are 1 to 3 cents lower, and wheat is 7 to 13 cents higher.

The U.S. stock market is flat to weaker with the Dow down 10. The dollar index is 9 points lower. Interest rate products are mixed. Energies are firmer with crude up $0.85. Livestock trade is flat to slightly weaker. Precious metals are mixed with gold up $10.00.

CORN

Corn trade is 3 to 4 cents higher at midday with trade bouncing back from overnight selling with support from strength in wheat and firmer spread action while the export wire remains quiet. Ethanol margins continue to deteriorate with the rebound in corn, with production falling slightly by 16,000 barrels per day, while stocks continue to grow as demand decline rising by 374,000 barrels.

Basis remains generally strong. On the March contract support is the lower Bollinger Band at $4.10 with the 20-day at $4.24 becoming resistance which we are just below at midday.

SOYBEANS

Soybean trade is 1 to 3 cents lower at midday with trade surging back from overnight weakness with flat to soft spread action as the export wire remains quiet, and overnight technical issues that plagued trade seemingly resolved. Meal is flat to $1.00 lower and oil is flat to 10 points higher. South America has rains moving into much of central and southern Brazil and Argentina short term, with dry pockets and high temps still a worry with the second week still potentially showing broader improvement.

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 last week, with the upper Bollinger Band at $12.16, with support the 20-day at $11.55 which we are back above at midday with the lower Bollinger Band at 10.92 below that.

WHEAT

Wheat trade is 7 to 13 cents higher with trade surging back during the day session with winter wheats leading as the overall rangebound action continues. The dollar remains at the lower end of the range but hasn’t shifted export competitiveness yet. World export tenders continue to go to Black Sea origin for the most part, with little change in overall conditions there going into dormancy. The western plains look to mostly remain dry short term.

Kansas City is at 39-cent discount to Chicago on the March with active trade continuing, with Minneapolis at -32. Kansas City March chart resistance is the 20-day at $5.57 which we failed to hold late last week, and support is the lower Bollinger Band at $5.41, which we tested before bouncing.

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