DTN Midday Grain Comments 01/26 10:59
All Grains Higher at Midday
Corn is 16 to 17 cents higher, soybeans are 29 to 31 cents higher, and wheat
is 14 to 17 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is mixed with the Dow up 13. The dollar index is 21
lower. Interest rate products are flat to weaker. Energies are mixed with crude
down $0.20. Livestock trade is mostly higher. Precious metals are mixed with
gold down $2.00.
Corn trade is 16 to 17 cents higher at midday with trade finding broad
buying overnight, and then further buying after sales of 1.36 million metric
tons of old crop corn were announced to China, and along with 102,800 metric
tons sold to unknown. Ethanol margins will remain poor with soft demand, with
the cash market offering little sustained relief. Basis has remained fairly
sideways with movement to be limited by the winter storm to start the week. On
the March contract support is the 20-day at $5.03, with the next level up the
recent high at $5.41.
Soybeans are 29 to 31 cents higher with firmer spread action and good
support from products and a drier forecast for Argentina. Meal is $7.00 to
$8.00 higher and oil is 75 to 85 points higher. Basis will likely remain flat
with slower movement and a bigger focus on crush margins. Brazil should catch
rains short term with very early harvest underway, with Argentina action mixed
with central and south headed drier. The March chart has support at the 20-day
at $13.55, with resistance the old support at $13.85.
Wheat trade is 14 to 17 cents higher at midday with trade following the row
crops higher after early weakness with winter wheats leading. The dollar
remains above 90 on the index, and squarely in the middle of the recent range
but rallies continue to fade. The Plains should see some benefit from the
winter storm sweeping through on snow cover and moisture. Russian farmers are
petitioning against export taxes as well but no immediate change is expected.
Kansas City is at 21-cent discount to Chicago with the pattern of narrower
overnight trade continuing, with Minneapolis at -23. Kansas City March chart
support is the 20-day at $6.14, and resistance is the upper Bollinger Band at
(c) Copyright 2021 DTN, LLC. All rights reserved.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot