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DTN Midday Grain Comments 01/30 10:59
Corn, Beans & Wheat Higher at Midday
Corn trade is flat to 1 cent higher; beans are 18 to 20 cents higher, and
wheat trade is 4 to 8 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn trade is flat to 1 cent higher; beans are 18 to 20 cents higher, and
wheat trade is 4 to 8 cents higher. The U.S. stock market is weaker with the
Dow down 45 points. The dollar index is 10 points higher. Interest rate
products are lower. Energies are weaker with crude down 0.05 and natural gas
off 0.07. Livestock trade is firmer. Precious metals are mixed with gold off
5.00.
CORN:
Corn trade is flat to 1 cent higher at midday to open the week with spread
action flat to lower as we press back into resistance at the upper end before
fading a bit with mixed progress in South America and nearby demand holding up
well. Ethanol margins will need blender margins to stay solid to hold demand
and production at recent levels with sinking natural gas adding support. Crop
development will continue to be watched with mixed Argentina rains. The daily
export wire will need to continue as weekly inspections were a bit soft at 20.8
million bushels (527,932 mt). Basis has stabilized in the west with cash bids
holding up overall. On the March chart, support is at the $6.69 20-day moving
average with the upper Bollinger Band at $6.92 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.
SOYBEANS:
Soybeans are 18 to 20 cents higher at midday with mixed Argentina action and
rains slowing some of the early harvest in Brazil adding support along with
nearby demand holding up well. Meal is 9.00 to 10.00 higher and oil is 70 to 80
points higher. The daily export wire was quiet to start the week after better
action overall with weekly inspections improved at 1.855 million metric tons.
South American weather should help stabilize the Argentina crop with Brazil has
pace to lag a little bit. Basis remains mostly sideways near term. March chart
support is at the $15.05 20-day which we closed just above, with the Upper
Bollinger Band at $15.41 the next level of resistance which we are a dime away
from overnight.
WHEAT:
Wheat trade is 4 to 8 cents higher at midday with KC action leading again
with flat to firm spread action. Trade is pressing into the higher end of the
recent range as we continue to ease oversold conditions with little fresh news
overall. The Southern Plains should show some improvement. Europe and the Black
Sea see mixed weather as we move deeper into winter along with the ongoing
political questions. Matif wheat values are a bit firmer today as well. Weekly
export inspections improved at 445,443 metric tons. On the chart, KC March has
support at the 20-day moving average at $8.44 which are solidly above, with the
recent high at $8.95 as resistance with the Upper Bollinger Band at $8.85 which
we are just below overnight.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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