Soybeans are 24 to 26 cents higher, Corn is 4 to 5 cents higher, and wheat is narrowly mixed.
The U.S. stock market is firmer with the Dow up 460. The dollar index is 27 points higher. Interest rate products are weaker. Energies are firmer with crude up $0.75. Livestock trade is mixed. Precious metals are weaker with gold down $46.00.
Corn trade is 4 to 5 cents higher at midday with trade following soybeans to fresh highs again, topping $5.00 briefly before pulling back with stronger spread action intact. Ethanol margins remain under pressure with the weekly report showing production up slightly by 1,000 barrels per day, and stocks off 220,000 barrels as the holiday season wraps up with implied gasoline demand off sharply.
Basis is expected to remain sideways with strength clustered around river locations. The daily wire will be watched to see what shows up after the recent spread strength with nothing hitting to start the week with 101,062 metric tons reported to unknown. Argentina’s corn areas are expected to remain dry in the near term with potentially better rains in a few areas short term. On the March contract support is the 20-day at $4.48, with the next level up the upper Bollinger Band at $4.99 which we are just below this a.m., then contract high at $5.02 3/4.
Soybeans are 24 to 26 cents higher at midday with volatile trade continuing as we trade 30+ higher briefly overnight before fading and rebounding during the day session. Meal is $8.50 to $9.50 higher with oil 75 to 85 points higher.
Basis remains strong as we continue ship and crush with product values remaining strong helping to carry the rally with oil taking the lead this week. Brazil should continue to see better moisture near term with Argentina seeing better rains forecasted short term. The March chart has resistance at the fresh high at $13.78 1/4 then the upper Bollinger band at $13.71 which we are just above at midday, with support the 20-day at 12.41.
Wheat trade is narrowly mixed with front month spread weakness in the Chicago action moving March/May back to slight carry. The dollar remains below 90 on the index this a.m., with light strength so far. The plains are expected to see limited moisture with cold scares remaining limited for now. Kansas City is at 43-cent discount to Chicago on the March with active trade continuing, with Minneapolis at -43 as well. Kansas City March chart support is the 20-day at $5.79, and resistance is the upper Bollinger Band at $6.18 which we are just below.
January 6, 2021
By David Fiala, DTN Contributing Analyst
10:51 - 10/01/2021 / Number : 18154 / Show Count : 142