DTN Grain Midday: Corn, Wheat Having a Happy Monday

Soybean harvest. ©Debra L Ferguson

Corn is 3 to 4 cents higher, soybeans are narrowly mixed and wheat is 5 to 8 cents higher.

The U.S. stock market is flat with the Dow down 10 points. The dollar index is 0.20 lower. Interest rate products are weaker. Energies are mixed with crude up $1.90. Livestock trade is mixed. Precious metals are firmer with gold up $32.50.


Corn trade is 3 to 4 cents higher at midday Monday with trade holding light gains amid weaker spread action to open the week. Ethanol production should start to recover as the country thaws further this week, with demand likely to rebound after a sharp contraction last week. Trade will continue to look for further export-sales confirmations with the daily wire remaining quiet and export inspections holding at 1.232 million.

Basis should remain sideways short term. Double crop planting in Brazil is well underway as well. December corn remains near contract highs today. On the March contract, support is the 20-day at $5.44, which we are just above; the upper Bollinger Band at $5.66 as resistance.


Soybeans is narrowly mixed at midday. Trade is shaking off a drier Argentina forecast to start as Brazil harvest progresses with spreads weakening, while November scored fresh highs. Meal is $1.00 to $2.00 lower and oil is narrowly mixed.

Basis will likely remain flat with slower movement as the export program winds down and a bigger focus is on crush margins into spring; weather is limiting remaining export movement as well with export inspections continuing to slow at 721,845 metric tons. Brazil should catch rains short term for most, with early harvest underway and behind the usual pace. Argentina action is trending warmer and drier. November soybeans continue to struggle to hold gains despite contract highs versus December corn, with acres still not likely to shift at this point with cotton holding a premium in the south as well. The March chart has support at the 20-day at $13.73, which we are just above. and resistance at the lower Bollinger Band at $13.97.


Wheat trade is 5 to 8 cents higher with trade working to hold the upper end of the range as we see how the Plains thaw out, as well as progress in Russia and the effects of the export taxes so far. The dollar looks to be settling into a 90-91 range on the index with weaker action moving us back to the lower end of the range.

The Plains should see snow cover lift this week with sustained warmer weather likely to start growth if it shows up across Kansas. The outlook forum put new crop carryout at 698 million bushels. KC is at 17-cent discount to Chicago, with Minneapolis at 20-cent discount and wider action today. Export inspected remain soft at 324,597 metric tons. KC March chart support is the 20-day at $6.28, and resistance is the upper Bollinger Band at $6.46.

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