DTN Grain Midday: All Grains Higher

Soybean harvest. ©Debra L Ferguson

Corn is flat to 2 cents higher, soybeans are 12 to 14 cents higher, and wheat is 9 to 14 cents higher.

The U.S. stock market is firmer with the Dow up 40. The dollar index is 8 points lower. Interest rate products are weaker. Energies are firmer with crude up $0.85. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold down $7.50.

CORN

Corn trade is flat to 2 cents higher at midday with light spread strength ahead of the report, with position squaring to continue until report time. Ethanol margins remain soft with trade expecting further slowdowns in production in January.

Basis is expected to remain sideways with strength clustered around river locations and some countryside weakness. The daily wire will be watched to see what shows up after recent spread strength with nothing for corn today, with Argentina easing export curbs on corn slightly. The Stocks and WASDE report at 11 a.m. is expected to show stocks at 11.951 billion bushels, with carryout at 1.599 billion, and yield at 175.3 BPA. On the March contract, support is the 20-day at $4.63, with the next level up the upper Bollinger Band at $5.15, and the contract high at $5.02 3/4 below that.

SOYBEANS

Soybeans are 12 to 14 cents higher at midday with trade staying near the upper end of the range in pre-report action with spread slightly firmer, with fresh highs scored yet again. Meal is $5.50 to $6.50 higher and oil is 40 to 50 points lower. The report is expected to show stocks at 2.92 billion, carryout at 139 million, and yield at 50.5 BPA.

Basis has started to show pockets of weakness with crush likely to take precedence over shipping in coming weeks. Brazil should catch rains short term, with the better action sticking around in Argentina for now. USDA announced 120,000 metric tons sold to unknown today. The March chart has resistance at the fresh high at $13.90 then the upper Bollinger Band at $14.14, with support the 20-day at 12.83.

WHEAT

Wheat trade is 8 to 12 cents higher at midday with the pattern of active overnight trade continuing with trade turning from initially flat to trade to sharply higher with support from further talk of Russian export tax increases. The dollar remains above 90 on the index with sideways action so far. The report is expected to show wheat stocks at 1.695 billion bushels, carryout at 859 million bushels, and acres at 31.528 million for winter wheat. The Plains are expected to see limited moisture with cold scares remaining limited for now. Kansas City is at 42-cent discount to Chicago on the March, with Minneapolis at -33 backing away from the tightest levels seen recently. Kansas City March chart support is the 20-day at $5.86, and resistance is the upper Bollinger Band at $6.16.

 

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