DTN Grain Open: Corn, Beans Higher

Mississippi River Port ©Debra L Ferguson Stock Photography

Corn is 1 to 2 cents higher, soybeans are 11 to 13 cents higher, and wheat is flat to 7 cents lower.

The U.S. stock market is firmer with the Dow up 175. The dollar index is 50 points lower. Interest rate products are firmer. Energies are firmer with crude up $0.30. Livestock trade is weaker. Precious metals are mixed with gold up $2.50.

CORN

Corn trade is 1 to 2 cents higher at midday with lightly firmer spread action and support from soybeans spilling over. Outside markets are quiet for the most part with the dollar making new lows. 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 declines rising by 374,000 barrels.

Basis remains generally strong. Weekly export sales remained solid at 1.37 million metric tons. On the March contract support is the lower Bollinger Band at $4.10 with the 20-day at $4.25 becoming resistance which we are just above overnight.

SOYBEANS

Soybean trade is 11 to 13 cents higher at midday with trade rebounding off the lows scored yesterday with flat spread action as the South American weather forecast is little changed short term, and trade looks for fresh export business on the break as we close in on a month since the last announced sale. Meal is $2.50 to $3.50 higher and oil is 60 to 70 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.

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. Weekly export sales were softer at 406,900 metric tons, 163,800 of meal, and 2,500 of oil. 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 $11.58 which we are back above at midday with the lower Bollinger Band at 10.92 below that.

WHEAT

Wheat trade is flat to 7 cents lower with choppy trade continuing today with little fresh news. 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 with better moisture to the east.

Kansas City is at 35-cent discount to Chicago on the March with active trade continuing, with Minneapolis at -28. Weekly export sales were off from the surge last week at 446,400 metric tons. 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 $5.42 which we tested before bouncing yesterday.

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