DTN Grain Midday: Corn, Soybean Futures Higher; Wheat Mixed

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    Corn futures are 1 to 2 cents higher at midday Thursday; soybean futures are 28 to 32 cents higher; wheat futures are 2 cents lower to 7 cents higher.

    CORN:

    Corn futures are 1 to 2 cents higher at midday Thursday, working back from early weakness as soybeans surged again, with trade just below the recent highs with firmer spread action. Ethanol margins will continue to be squeezed by tepid short-term demand with stocks building another 682,000 barrels while production rebounded 46,000 barrels per day (bpd).

    The weekly export sales report is delayed until Friday with no official confirmation of the rumored Chinese purchases yet. Basis should remain rangebound to slightly weaker in the short term with weather likely to slow short-term movement. Trade will continue watching South American weather as we head towards second-crop planting and development.

    On the March contract we have support at the 20-day moving average at $6.02; the upper Bollinger band at $6.15 is further resistance, which we tested before fading slightly.

    SOYBEANS:

    Soybean futures are 28 to 32 cents higher at midday as trade looks for confirmation of rumored export demand, strong soyoil action, and continued debates about South American forecasts and production potential. Meal is $4.50 to $5.50 higher and oil is 150 to 160 points higher.

    Basis remains mostly flat in the short term. Crush margins remain solid with future renewable diesel demand likely to keep good support under oil going forward. Early harvest is underway in South America, likely to further crimp U.S. export competitiveness in February.

    On the March soybean chart, we have resistance at the fresh high of $14.28 1/2, with trade back above the 20-day moving average at $13.72 again becoming support.

    WHEAT:

    Wheat futures are 2 cents lower to 7 cents higher with spring wheat action leading as the winter wheats move back toward $8.00 up front on continued political and weather concerns. The dollar remains squarely rangebound in the short term.

    Plains weather looks drier with a little snow cover out of the last system while temps continue to fluctuate, keeping stress intact with other Northern Hemisphere weather concerns fading for the moment while political fears ramp up again with little change in the Russia/Ukraine situation.

    Spring wheat is firmer vs. Chicago, moving the premium to $1.53 on the March, with KC at a 7-cent premium in firmer action as well. KC March chart support is the lower Bollinger band at $7.37 with the 20-day moving average at $7.98, which we are just above at midday.

    MARKET SUMMARY:

    The U.S. stock market is firmer with the Dow up 375 points. The U.S. Dollar Index is 5 points higher. Interest rate products are mixed. Energies are mixed with crude up .80. Livestock trade is mixed. Precious metals are mixed with gold off 2.00.

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