DTN Grain Midday: Futures Move Higher

    The Port of Rosedale - Rosedale, Mississippi - Mississippi River ©Debra L Ferguson Stock Photography

    Corn futures are 7 to 8 cents higher at midday Tuesday; soybean futures are 5 to 6 cents higher; wheat futures are 5 to 18 cents higher.

    CORN:

    Corn futures are 7 to 8 cents higher with flat spread action as trade works to consolidate at fresh highs with Russia/Ukraine tensions and wheat strength continuing to lead. Ethanol margins will continue to be squeezed by tepid short-term demand with trade expecting another stocks build this week.

    Trade will continue to look for further sales confirmation on the daily wire; no sales reported today. Basis should remain rangebound to slightly weaker in the short term with weather likely to slow movement. Trade will continue watching South American weather as we head toward second-crop planting and development.

    On the March contract we have support at the 20-day moving average at $6.03 then the fresh high at 6.29 1/4 as resistance, which we are testing at midday.

    SOYBEANS:

    Soybean futures are 4 to 6 cents higher at midday with flat spread action as trade bounced off $14.00 nearby after the volatile start to the week with trade digesting South American rains and nearby demand. Meal is flat to $1.00 lower and oil is 40 to 50 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, while meal has struggled with the $400 level in recent days. Early harvest is underway in South America, likely to further crimp U.S. export competitiveness in February. No fresh sales showed up on the daily wire, with better demand likely needed to push things with the improved weather.

    On the March soybean chart, we have resistance at the fresh high of $14.29 1/2, with trade back above the 20-day moving average at $13.83 as support.

    WHEAT:

    Wheat futures are 5 to 18 cents higher with KC action taking the lead at midday with political concerns continuing to push the winter wheats; spring wheat has tacked more sideways. The dollar remains squarely rangebound in the short term as well but is pressing back towards the upper end a bit.

    Plains weather looks to remain challenging with conditions declining further while political fears ramp up again with little change in the Russia/Ukraine situation besides U.S. recalling diplomats on Sunday. Spring wheat is weaker versus. Chicago dropping the premium to 1.36 on the March, with KC at an 18-cent premium in flat action.

    KC March chart support is the 20-day moving average at $7.92, which we moved above; resistance is the Upper Bollinger Band at $8.38, which we are testing at midday.

    MARKET SUMMARY:

    The U.S. stock market is weaker with the Dow down 350 points. The U.S. Dollar Index is 25 points higher. Interest rate products are weaker. Energies are firmer with crude up 1.50. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold up 6.00.

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