DTN Grain Midday: All Markets Move Lower

Corn stocks at an elevator location. ©Debra L Ferguson Stock Images

Corn is 3 to 4 cents lower, soybeans are 5 to 6 cents lower, and wheat is 2 to 8 cents lower.

The U.S. stock market is firmer with the Dow up 175. The dollar index is flat. Interest rate products are weaker. Energies are firmer with crude up $0.40. Livestock trade is weaker. Precious metals are mixed with gold down $6.00.

CORN

Corn trade is 3 to 4 cents lower at midday with flat spread action with range bound action continuing amid a lack of fresh news, although we did see another 182,020 metric tons announced as sold to Mexico. Ethanol margins continue to be crimped by weaker demand despite the energy complex being at the upper end of the recent range, along with corn values holding the upper end of the range. Basis remains generally strong. On the March contract support is the lower Bollinger Band at $4.14 with the 20-day at $4.25 becoming resistance which we are just below overnight.

SOYBEANS

Soybean trade is 5 to 6 cents lower at midday with trade so far failing to extend the midweek rebound with exports remaining lacking, while South American weather sees little immediate change. Meal is $3.00 to $4.00 lower and oil is 30 to 40 points higher. South America has rains coverage looking better for Brazil than Argentina in the short term. Basis remains strong as we continue ship and crush at a good clip.

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 $12.09, with support the 20-day at $11.62 which we are testing overnight with the lower Bollinger Band at 11.14 below that.

WHEAT

Wheat trade is 2 to 8 cents lower overnight with choppy trade continuing today with little fresh news for wheat. The dollar remains at the lower end of the range but hasn’t shifted export competitiveness in a big way so far. 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 33-cent discount to Chicago on the March with active trade continuing, with Minneapolis at -28. 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.

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