DTN Grain Midday: Futures Down Double Digits

    ©Debra L Ferguson Stock Images

    Corn trade is 16 to 18 cents lower, beans are 16 to 18 cents lower and wheat is 15 to 30 cents lower.


    Corn trade is 16 to 18 cents lower at midday Tuesday with trade fading back into support levels and broad commodity weakness so far Tuesday on renewed COVID-19 concerns. Ethanol margins have narrowed with the energy move but demand will remain strong through Christmas. Basis should remain steady to firmer short term with fall field work likely to make good progress where supplies are available.

    On the March contract, we have resistance at the recent high of $5.96 3/4, with the upper Bollinger Band at $5.94, and the 20-day moving average as support at $5.77, which we have faded through at midday, then the lower Bollinger Band at $5.51.


    Soybean trade is 16 to 18 cents lower at midday with trade fading through support levels and broad product weakness so far. Meal is flat to $1.00 lower and oil is 2.70 cents to 2.90 cents lower. South America looks to continue short-term progress with issues remaining limited for now while the extended forecast remaining mixed for crop development short term.

    Crush margins remain solid but further product weakness will limit enthusiasm. USDA announced 132,000 metric tons sold to unknown. On the January soybean chart, we fell below the 20-day at $12.44 Monday, with further support the lower Bollinger Band at $11.95.


    Wheat trade is 15 to 30 cents lower at midday as March becomes front month with trade backing further off the highs amid broad weakness. The Minneapolis contract is holding up best so far with Australian harvest to expand soon. The dollar is just below 96 points, fading further off the highs before bouncing back at midday.

    Weather in the Plains looks little changed short term with longer-term dry concerns for the Southern Plains heading toward dormancy with 92% emerged versus 91% on average with 44% good to excellent and 23% poor to very poor. Spring wheat is firmer versus Chicago moving the premium to 2.35 cents on the March, with KC at a 33-cent premium in weaker action so far.

    KC March chart support is at the 20-day at $8.29, which we are testing at midday with resistance at the upper Bollinger Band at $8.90 with the fresh high at $8.92.


    The U.S. stock market is weaker with the Dow down 530 points. The U.S. Dollar Index is flat. Interest rate products are mostly higher. Energies are weaker with crude off $2.80. Livestock trade is weaker. Precious metals are weaker with gold down $7.00.

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