DTN Grains Midday: All Lower for Wednesday

Soybean harvest. ©Debra L Ferguson

Corn is 5 to 6 cents lower, soybeans are 17 to 19 cents lower, and wheat is 4 to 6 cents lower.

The U.S. stock market is firmer with the Dow up 195. The dollar index is flat. Interest rate products are flat to lower. Energies are mostly higher with crude up $0.45. Livestock trade is mostly higher. Precious metals are firmer with gold up $24.50.

CORN

Corn trade is 5 to 6 cents lower with spread trade firming after trade filled the $5.17 gap area and then bounced back into the day session. Ethanol margins will remain poor with soft demand, and with limited relief in the cash market short term.

Basis is likely to weaken further as trade assesses near term cash needs with the futures break adding support. The daily export wire quiet today. On the March contract, support was the gap area at $5.17 which we fell through overnight with the 20-day at $4.88 below that, with the next level up the upper Bollinger Band at $5.47, and the contract high at $5.41 1/2 just below that.

SOYBEANS

Soybeans is 17 to 19 cents lower at midday with trade off the 30 cent lower overnight trade with spread action weaker to flat after some early strength. Meal is $7.50 to $8.50 lower and oil is 60 to 70 points higher.

Basis will likely remain flat with crush likely to take precedence over shipping in coming weeks with crush margins narrowing overall and new crop seeing more interest in recent export bookings with nothing on the wire today. Brazil should catch rains short term with very early harvest underway, with Argentina action mixed. The March chart has support at the 20-day moving average of $13.36 with resistance likely to start at the $13.82 area on a rebound which had been short-term support.

WHEAT

Wheat trade is 4 to 6 cents lower at midday with trade following the lead of the row crops in coming off the lows, and the higher protein wheats holding up better so far. The dollar remains above 90 on the index with flat to higher action this a.m. The Plains are expected to see limited moisture with cold scares remaining limited for now. Kansas City is at 30-cent discount to Chicago with sharply narrower trade overnight trade widening back out, with Minneapolis at -30 as well. Kansas City March chart support is the 20-day at $6.05, and resistance is the fresh high at $6.60.

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