DTN Midday Grain Comments

Corn, Beans Higher; Wheat Mixed at Midday Corn is 3 to 4 cents higher, soybeans are 4 to 5 cents higher, and wheat is 4 cents lower to 1 cent higher. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 125 points. The dollar index is 15 points lower. Interest rate products are weaker. Energies are weaker with crude down $2.30. Livestock trade is mixed. Precious metals are mixed with gold up $20.



Corn trade is 3 to 4 cents higher at midday with trade pushing to new highs post report with stocks at 1.95 billion bushels vs. 2.25 billion expected and firmer spread action supporting the buying. The daily export wire will be watched to see if sales maintain the recent pace with nothing again today and weekly sales strong at 2.03 million metric tons. Ethanol margins are seeing pressure from corn rallying while energies are sharply lower. Basis should see pressure this week with more bushels coming in to town. On the December contract resistance is the fresh high at $3.85 1/2 with support the 20-day at $3.67 7/8.



Soybean trade is 4 to 5 cents higher with solid buying and spread trade after stocks came in at 523 million vs. 576 million expected, along with 120,000 metric tons sold to Egypt on the daily wire and further sales expected with little change in South American weather. Meal is 6.00 to 7.00 higher and oil is 65 to 75 points higher. The ral remains in the lower end of the range ahead of South American planting with farmers waiting for seasonal rains with Argentina working to encourage sales while Brazilian farmers have heavily sold ahead with acres expected to increase. Export offers continue to get tighter in availability as well with meal driving the product complex while strain on domestic logistics will increase as shipping pace needs move along at a rapid pace. Weekly export sales were strong at 2.59 million metric tons with meal at 536,700 and oil at 6,900. The November chart has resistance at the recent high at 10.46 3/4 with support the 20-day at 10.01.



Wheat trade is 4 cents lower to 1 cent higher with rising Russian values inducing buying before stocks came in lower than expected at 2.16 billion bushels, 60 million less than expected, and almost 200 million below last year, with trade now looking to consolidate vs. the fresh highs. European dryness will remain in focus along with Plains planting progress. Kansas City is at a 64-cent discount to Chicago with spreads narrowing this a.m., while Minneapolis is back to a 38 cent discount with weaker action. Wheat drilling progress should expand across the plains short term with OK moisture for most for now but follow-up rain lacking overall. Wheat export sales were improved at 523,600 metric tons. Kansas City December chart resistance is the fresh high at $5.15 1/2, and support is the 20-day at $4.82.


David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com

Follow him on Twitter @davidfiala