DTN Midday Grain Comments 01/27 10:54
Grains Mixed at Midday
Corn is narrowly mixed, soybeans are 4 to 6 cents higher, and wheat is 8 to
10 cents lower.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is weaker with the Dow down 360. The dollar index is
50 higher. Interest rate products are firmer. Energies are firmer with crude up
$0.30. Livestock trade is mixed. Precious metals are weaker with gold down
Corn trade is narrowly mixed with trade scoring fresh highs for the move
with strong spread trade before fading during the day session after the
announcement of another 680,000 metric tons sold to China. Ethanol margins will
remain poor with soft demand, with the weekly report showing production down
12,000 barrels per day, and stocks were 26,000 barrels lower. 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 $5.07, with the
next level up the recent high at $5.43 3/4.
Soybeans are 5 to 7 cents higher at midday with good spread action but trade
failed to hold the highs scored overnight. Meal is $1.00 to $2.00 lower and oil
is 80 to 90 points higher. The USDA announced 132,000 metric tons of old crop
to China, and 126,500 for new crop. Basis will likely remain flat with slower
movement and a bigger focus on crush margins as oil does most of the work this
morning. Brazil should catch rains short term with very early harvest underway
and behind the usual pace, with Argentina action mixed with central and south
headed drier. The March chart has support at the 20-day at $13.62, with
resistance the $14.00.
Wheat trade is 8 to 10 cents lower at midday with the stronger dollar and
little fresh news providing headwinds this a.m. The dollar remains sharply
higher, which will likely provide some wheat headwinds. 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. KC is at 22-cent discount to Chicago with the narrowing
move slowing down, with Minneapolis at -25. KC March chart support is the
20-day at $6.18, and resistance is the upper Bollinger Band at $6.57.
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