DTN Grain Midday: Corn Seeing Green

©Debra L Ferguson Stock Photography

Corn is 3 to 4 cents higher, soybeans are narrowly mixed and wheat is 7 to 10 cents higher.

CORN:

Corn trade is 2 to 3 cents higher at midday Tuesday with trade bouncing back to the recent highs overnight before fading a bit during the day session. Ethanol margins should remain in the recent range with cheaper fall blends and weaker corn basis likely to shore up margins, with natural gas prices the biggest short-term headwind while crude and unleaded move back to the upper end of the range to boost blender margins.

South America will continue with early full season corn planting with little weather concerns there so far. Weekly crop progress showed conditions 1% lower to 58% good to excellent and 15% poor to very poor; 87% dented versus 81% on average, 37% mature versus 31% on average and 4% harvested versus 5% on average.

Corn basis will likely continue to drift lower into harvest. On the December contract, we have support at the fresh low at $4.97 while resistance is the 20-day at $5.34.

SOYBEANS:

Soybeans are narrowly mixed at midday with further export sales expected to be announced soon as China sources from the U.S. and Brazil for fall needs, while further progress will need to be made at the ports to execute sales. Meal is $2.50 to $3.50 lower and oil is 1.00 cent to 1.20 cents higher.

Warmer weather should continue to push the crop towards maturity. Basis levels have been flat to weaker in recent days. Trade will watch South American weather, but widespread planting won’t come until the end of the month depending on weather.

Weekly crop progress showed conditions unchanged at 57% good to excellent, 14% poor to very poor, with 38% dropping leaves versus 29% on average. On the November soybean chart, resistance is at the 20-day at $13.03 with support at the recent low at $12.65.

WHEAT:

Wheat trade is 7 to 10 cents higher at midday with winter wheats leading. The dollar is closing back in on 93 points on the index with trade fading again. KC is even to Chicago, repeating the action from the start of last week, with Minneapolis is at a 186-cent premium on the December contract in weaker action.

Weather in the Plains looks dry short term as planting gets going. Winter wheat planting was at 12% versus 8% on average. KC December on the chart has resistance at the 20-day at $7.12 with the fresh low at $6.76 1/2 as support.

MARKET SUMMARY:

The U.S. stock market is mixed with the Dow down 165 points. The U.S. Dollar Index is 0.15 lower. Interest rate products are firmer. Energies are flat with crude up $0.10. Livestock trade is firmer with cattle leading. Precious metals are mixed with gold up $15.40.

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