DTN Grain Midday: Corn on the Way Up

    ©Debra L Ferguson Stock Images

    Corn trade is 5 to 6 cents higher, beans are flat to 1 cent higher and wheat is 1 cent lower to 16 cents higher.

    CORN:

    Corn trade is 5 to 6 cents higher at midday Tuesday with trade bouncing from early weakness to test nearby resistance levels Tuesday morning. Harvest progress remained ahead of average on the weekly report at 66% versus 53% on average, but will fall closer to average next week with more midweek rains on deck for many.

    Ethanol margins should remain stable to better short term, with production continuing to surge despite natural gas prices as we work to rebuild stocks. Basis should remain steady to firmer short term as harvest pressure eases.

    On the December contract, we have chart support at the 20-day at $5.32 and resistance the upper Bollinger Band at $5.48 as trade pushed back into last week’s highs again at $5.43.

    SOYBEANS:

    Soybean trade are flat to a penny higher at midday with trade working to consolidate the Monday rebound into midweek with slowing harvest and another round of fresh export sales at 199,000 metric tons to China and 125,730 metric tons to Mexico. Meal is $1.00 to $2.00 lower and oil is 0.65 cent to 0.75 cent lower with product values struggling to hold gains.

    Harvest will slow with recent rains but remained above average on the weekly report at 73% versus 70% on average. Brazil looks to have good short-term conditions with Argentina more mixed nearby but overall major issues limited in early planting.

    On the November soybean chart, trade is just above the 20-day at $12.35 with the recent high at $12.49 1/2 the next round up, with further support at the lower Bollinger Band at $11.90.

    WHEAT:

    Wheat trade is 1 cent lower to 16 cents higher with spring wheat moving to fresh highs and KC following suit while Chicago action struggles. The dollar remains in the upper part of the recent range in quieter action. Spring wheat remains at a 2.85-cent premium to Chicago, with KC at 25-cent premium in firmer action.

    Weather in the Plains remains fairly neutral for the moment with planting at 80% complete, same as average, emergence at 55% versus 59% on average, and good to excellent at 46%, and 20% poor to very poor, 5% better than the first report last year but in the lower part of the 10-year range.

    KC December chart support is at the 20-day at $7.43 with resistance at the upper Bollinger Band at $7.78, which we have pushed above at midday.

    MARKET SUMMARY:

    The U.S. stock market is firmer with the Dow up 130 points. The U.S. Dollar Index is 0.12 higher. Interest rate products are mixed. Energies are firmer with crude up $0.75. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold down $18.00.

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