DTN Grain Midday: Mixed at Midday

    Freshly harvest soybeans loaded in truck for transport to grain elevator. ©Debra L Ferguson

    Corn is narrowly mixed, soybeans are 4 to 6 cents higher, and wheat is 8 to 10 cents lower.

    The U.S. stock market is weaker with the Dow down 360. The dollar index is 50 higher. Interest rate products are firmer. Energies are firmer with crude up $0.30. Livestock trade is mixed. Precious metals are weaker with gold down $5.00.

    CORN

    Corn trade is narrowly mixed with trade scoring fresh highs for the move with strong spread trade before fading during the day session after the announcement of another 680,000 metric tons sold to China. Ethanol margins will remain poor with soft demand, with the weekly report showing production down 12,000 barrels per day, and stocks were 26,000 barrels lower.

    Basis has remained fairly sideways with movement to be limited by the winter storm to start the week. On the March contract support is the 20-day at $5.07, with the next level up the recent high at $5.43 3/4.

    SOYBEANS

    Soybeans are 5 to 7 cents higher at midday with good spread action but trade failed to hold the highs scored overnight. Meal is $1.00 to $2.00 lower and oil is 80 to 90 points higher. The USDA announced 132,000 metric tons of old crop to China, and 126,500 for new crop.

    Basis will likely remain flat with slower movement and a bigger focus on crush margins as oil does most of the work this morning. Brazil should catch rains short term with very early harvest underway and behind the usual pace, with Argentina action mixed with central and south headed drier. The March chart has support at the 20-day at $13.62, with resistance the $14.00.

    WHEAT

    Wheat trade is 8 to 10 cents lower at midday with the stronger dollar and little fresh news providing headwinds this a.m. The dollar remains sharply higher, which will likely provide some wheat headwinds. The plains should see some benefit from the winter storm sweeping through on snow cover and moisture. Russian farmers are petitioning against export taxes as well but no immediate change is expected. KC is at 22-cent discount to Chicago with the narrowing move slowing down, with Minneapolis at -25. KC March chart support is the 20-day at $6.18, and resistance is the upper Bollinger Band at $6.57.

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