Mixed slow action is seen in our midday grain trade.
CORN
Corn trade is fractionally mixed at midday; the trading range has only been around 3 cents following the strong finish yesterday and dime trading range. The weekly export sales were just above the range of expectations at 1,143,700 tons. Outside markets are lightly positive with the dollar lower. Limited changes are seen in the forecasts.
The February USDA World Agricultural Supply and Demand Estimates are due out next Friday, then we will have the USDA Outlook Forum at the end of the month. News is fairly limited besides these report this month but what we have seen remains positive for near-term demand numbers. The Cattle on Feed report Friday was higher than expected and the weekly ethanol production was higher than expected as well.
On the March corn chart support is the 10-day and 20-day at $3.62-$3.64 area, with the 200-day resistance at $3.69, then the $3.71 recent high.
SOYBEANS
Soybean trade is a penny lower on March to 4 cents higher on November at midday. Meal is off $2.50 and bean oil is up 23 points. The trading range has been mixed with March ranging from just over a nickel lower to nearly a nickel higher. No big weather influence is seen one way or the other.
The weekly export sales were at the low end of expectations at 623,900 tons, meal sales above expectations at 365,000 tons and soybean oil at 12,100 tons. November soybeans have held above $10 this week keeping soybean planted acre estimating high.
On the March soybean chart futures slipped below the $10.40 20-day at the start of the week, and have went back to challenge it this morning. It is nearby resistance then the $10.45 10-day. Support is at the $10.16 200-day, then the $10.04 100-day moving average.
WHEAT
Wheat trade is 1 to 5 cents higher across the three markets at midday. The dollar is lower which is supportive. The weekly export sales were okay at 451,200 tons. The U.S. is still struggling to be competitive to see weekly sales stay consistently near 1 million tons, which is necessary to get us out of our heavy supply side fundamental market.
The western belt is still short moisture which is limiting downside with lower spring wheat acreage expected due to low prices. This is supporting Minneapolis, which is the upside leader in wheat here at midday.
On the March Kansas City contract support is at the 10-day at $4.38 with resistance at the $4.55 200-day.
General Comments
The U.S. stock market indices are lower with the Dow futures down 40 points. The interest rate products are higher. The dollar index is 20 points lower. Energies are mixed. Livestock trade is higher. Precious metals are higher with gold up $11.
