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DTN Midday Grain Comments     01/20 11:12

   Corn, Soybean Futures Higher; Wheat Mixed

   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. 

David M. Fiala
DTN Contributing Analyst


   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.


   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.  


   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 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.

   David Fiala can be reached at 

   Follow him on Twitter @davidfiala

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