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DTN Midday Grain Comments 01/27 10:43
Corn Up, Beans Down Midday Friday
Corn trade is 1 to 2 cents higher; beans are 1 to 2 cents lower, and wheat
trade is flat to 7 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn trade is 1 to 2 cents higher; beans are 1 to 2 cents lower, and wheat
trade is flat to 7 cents higher. The U.S. stock market is flat with the Dow off
10 points. The U.S. Dollar Index is 0.20 higher. Interest rate products are
weaker. Energies are weaker with crude off $0.80 and natural gas off $0.08.
Livestock trade is firmer. Precious metals are mixed with gold up $1.00.
CORN:
Corn trade is 1 to 2 cents higher at midday Friday with steady to firmer
spread action as we edge back toward the top of the recent range. 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 as Argentina should show short-term improvement with the
extended forecast being watched again and some rains overnight. The daily
export wire was quiet Friday after some action this week. Basis has stabilized
in the west with above average action 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, which we have faded from last week with a fresh high for the move being
scored at $6.88 3/4.
SOYBEANS:
Soybeans are 1 to 2 cents lower at midday with light selling and slightly
softer spread action as trade continues to chop around the upper end of the
range with product action mixed. Meal is $1.00 to $2.00 higher and oil is 0.25
cent to 0.35 cent lower. The daily export wire was quiet to close the week
after better action overall. South American weather looks better for the most
part short term with harvest to keep moving forward in Brazil. Basis remains
mostly sideways near term. March chart support is at the $15.05 20-day which we
are moved back above Thursday, with the upper Bollinger Band at $15.41 the next
level of resistance.
WHEAT:
Wheat trade is flat to 7 cents higher with KC the leader again as trade
bounces back from overnight weakness to push toward this month's highs to close
the week. Matif wheat values are pulling back from the recent highs which
should limit upside. On the chart, KC March has support at the 20-day moving
average at $8.43, which are solidly above overnight, with the recent high at
$8.70 as resistance then the upper Bollinger Band at $8.80.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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