DTN Midday Grain Comments 01/31 11:01
Corn, Beans & Wheat Higher at Midday
Corn trade is 1 to 2 cents higher; beans are flat to 4 cents higher, and
wheat trade is 4 to 12 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 100 points. The Dollar Index
is 10 points lower. Interest rate products are higher. Energies are higher with
crude up 0.90 and natural gas up 0.02. Livestock trade is mostly lower.
Precious metals are higher with gold up 3.50.
Corn trade is 1 to 2 cents higher at midday with two-sided action so far as
we firm a bit during the day session. Spread action has remained solid as well.
Ethanol margins have support from natural gas while blender margins tighten
again as unleaded fades from the recent highs. Crop development will continue
to be watched with mixed Argentina rains. The daily export wire has been quiet
to start the week. Basis has stabilized in the west with above average action
holding up overall. On the March chart, support is at the $6.70 20-day moving
average with the upper Bollinger Band at $6.94 the next round up, which we have
faded from last week with a fresh high for the move being scored at $6.88 3/4,
which we tested Tuesday morning.
Soybeans are flat to 4 cents higher with spread action firmer, continuing to
test the upper end of the range with focus remaining on forward demand, and
South American development. Meal is 5.00 to 6.00 lower, and oil is 40 to 50
points higher. The daily export wire has remained quiet as we watch for more
action from China as they return from holiday. South American weather should
help stabilize the Argentina crop with Brazil harvest pace to lag a little bit.
Basis remains mostly sideways near term. March chart support is at the $15.06
20-day which we closed solidly above, with the Upper Bollinger Band at $15.44
which we have tested Tuesday morning.
Wheat trade is 4 to 12 cents higher with Chicago action leading as trade
bounces back from early weakness to continue to press into resistance at the
top of the range with steady to firmer spread action. The Southern Plains
should show improvement over the next couple of weeks with the second week
looking wetter, while Europe and the Black Sea see mixed weather as we move
deeper into winter along with the ongoing political questions with Russian
export pace slowing a bit. Matif wheat values are a bit firmer as well. On the
chart, KC March has support at the 20-day moving average at $8.43 which we are
solidly above, with the recent high at $8.95 as resistance with the Upper
Bollinger Band at $8.77 which we are testing at midday.
David Fiala can be reached at email@example.com
Follow him on Twitter @davidfiala
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