DTN Grain Midday: Chart Selling and Weather Pressure

    ©Debra L Ferguson Stock Images

    Soybeans are sharply lower at midday due to chart selling and OK weather.


    Corn trade is 4 to 5 cents lower at midday as spillover pressure from the soy trade triggers some selling this morning with trade a couple cents off the early lows. Ethanol margins should be a little better this morning with ethanol futures firming slightly but remain soft overall. Corn basis has firmed in parts of the western belt in recent days with strong export demand, while sliding ethanol margins have limited enthusiasm elsewhere.

    The weekly export inspections were good at 1.061 million metric tons. The February USDA monthly report is due out at the end of next week; until then news is limited.

    On the March corn chart support is at the 50-day moving average at $3.56, resistance is now the 20-day at $3.62.


    Soybean trade is 25 to 30 cents lower at midday with trade selling off on better rain forecasted for the dry areas of Argentina at the end of the week along with broader market weakness this morning. Meal is $9 to $10 lower, and oil is 70 to 80 points lower. Wet weather is expected to slow early harvest in Brazil, and could cause some additional quality issues with the export program starting to gather steam.

    Talk of additional soybean acres due to futures sitting over $10 is starting to limit upside optimism in beans. The tremendous demand continues to be the supportive fundamental item, but the Chinese New Year holiday will slow trade in the near term. The weekly export inspections were very strong at 1.63 million metric tons.

    On the March soybean chart support is at the $10.36 20-day, then the $10.14 200-day. Resistance is now at the 10-day moving average at $10.59, then the $10.80 6-month high.


    Wheat trade is 3 to 7 cents lower at midday following the lead of the row crops and the dollar to start the week. Black Sea sellers have been active the last couple of days to keep wheat moving out of their ports with feed wheat becoming a growing emphasis. The dollar is back testing the 101 area on the index.

    The western belt is still shorter on near-term moisture which will be watched closer as the wheat gets closer to coming out of dormancy. The weekly export inspections were slightly improved at 321,479 metric tons.

    On the March Kansas City contract support is at the $4.27 100-day and resistance is at the $4.37 20-day then the $4.43 10-day moving average.

    General Comments

    The U.S. stock market indices are lower with the Dow futures down 190. The interest rate products are higher. The dollar index is 5 points lower. Energies are lower with crude down $0.55. Livestock trade is sharply lower for cattle. Precious metals are mixed with gold up $6.30.

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