DTN Grain Midday: Seeing Double-Digit Gains

    Corn is 11 to 12 cents higher, soybeans is 15 to 17 cents higher and wheat is 13 to 19 cents higher.


    The U.S. stock market is mixed with the Dow up 220 points. The U.S. Dollar Index is 0.17 lower. Interest rate products are weaker. Energies are firmer with crude up $2.50. Livestock trade is mostly lower. Precious metals are mixed with gold down $12.00.


    Corn trade is 11 to 12 cents higher at midday with firmer spread action as strong nearby demand ideas continue to carry trade. New crop is at new highs with a cooler stretch likely to limit near-term progress. The weekly ethanol report showed production down 34,000 barrels per day and stocks were 124,000 barrels per day, helping to support cash ethanol values.

    Corn basis continues to hold firm throughout the belt. Double-crop progress in Brazil looks to have mixed weather for most, with early growth seeming to be OK for now and the start of the dry season fast approaching. On the May contract. chart resistance is the contract high at $5.95, with the upper Bollinger Band at $5.85 now just below the market, then the 20-day at $5.59 as support.


    Soybeans are 15 to 17 cents higher at midday with trade likely to continue to chop along until we get a more sustained move from one of the products to lead the complex. South America is still moving forward on harvest, and November is gaining a bit against corn Wednesday morning, with overall spread action firm. Meal is $1.50 to $2.50 higher and oil is 1.05 cents to 1.15 cents higher. South America is expected to continue harvest progress in Brazil with little overall weather change short term and Argentina looking stable short term. The May soybean chart has resistance the 20-day at $14.07, which we are just above at midday, with support the lower Bollinger Band at $13.78.


    Wheat trade is 13 to 19 cents higher at midday with spillover support from corn helping to offset expected rain in Kansas in the short term, especially for corn as feed demand could shift further to wheat. The downtrend in the dollar is supportive to buying as well. Weather in the Plains has some cold in it as well, but threats look limited so far. KC has narrowed back to a 46-cent discount to Chicago with Minneapolis 18 cents above Chicago. KC May on the chart has support at the 20-day at $5.76 that we held Wednesday, with $5.99 the next level of resistance where we find the upper Bollinger Band, which we are just above at midday.

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