DTN Midday Grain Comments     01/25 10:49

   Corn, Soybeans, Wheat Futures Higher at Midday

   Corn futures are 7 to 8 cents higher at midday Tuesday; soybean futures are 
5 to 6 cents higher; wheat futures are 5 to 18 cents higher. 

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   The U.S. stock market is weaker with the Dow down 350 points. The U.S. 
Dollar Index is 25 points higher. Interest rate products are weaker. Energies 
are firmer with crude up 1.50. Livestock trade is mixed with hogs leading. 
Precious metals are firmer with gold up 6.00.

CORN:

   Corn futures are 7 to 8 cents higher with flat spread action as trade works 
to consolidate at fresh highs with Russia/Ukraine tensions and wheat strength 
continuing to lead. Ethanol margins will continue to be squeezed by tepid 
short-term demand with trade expecting another stocks build this week. Trade 
will continue to look for further sales confirmation on the daily wire; no 
sales reported today. Basis should remain rangebound to slightly weaker in the 
short term with weather likely to slow movement. Trade will continue watching 
South American weather as we head toward second-crop planting and development. 
On the March contract we have support at the 20-day moving average at $6.03 
then the fresh high at 6.29 1/4 as resistance, which we are testing at midday.  

SOYBEANS:

   Soybean futures are 4 to 6 cents higher at midday with flat spread action as 
trade bounced off $14.00 nearby after the volatile start to the week with trade 
digesting South American rains and nearby demand. Meal is flat to $1.00 lower 
and oil is 40 to 50 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, while meal has struggled with the $400 
level in recent days. Early harvest is underway in South America, likely to 
further crimp U.S. export competitiveness in February. No fresh sales showed up 
on the daily wire, with better demand likely needed to push things with the 
improved weather. On the March soybean chart, we have resistance at the fresh 
high of $14.29 1/2, with trade back above the 20-day moving average at $13.83 
as support.

WHEAT:

   Wheat futures are 5 to 18 cents higher with KC action taking the lead at 
midday with political concerns continuing to push the winter wheats; spring 
wheat has tacked more sideways. The dollar remains squarely rangebound in the 
short term as well but is pressing back towards the upper end a bit. Plains 
weather looks to remain challenging with conditions declining further while 
political fears ramp up again with little change in the Russia/Ukraine 
situation besides U.S. recalling diplomats on Sunday. Spring wheat is weaker 
versus. Chicago dropping the premium to 1.36 on the March, with KC at an 
18-cent premium in flat action. KC March chart support is the 20-day moving 
average at $7.92, which we moved above; resistance is the Upper Bollinger Band 
at $8.38, which we are testing at midday.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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