DTN Midday Grain Comments     01/14 10:59

   All Grains Higher at Midday

   Corn is 6 to 7 cents higher, soybeans are 16 to 17 cents higher, and wheat 
is 9 to 11 cents higher.

David M. Fiala
DTN Contributing Analyst

   The U.S. stock market is firmer with the Dow up 110. The dollar index is 6 
points lower. Interest rate products are mixed. Energies are flat with crude 
down $0.10. Livestock trade is weaker. Precious metals are mixed with gold off 
$5.50.

   CORN

   Corn trade is 6 to 7 cents higher at midday with steady spread action after 
trade bounced back from early weakness with December losing ground to soybeans 
on the acre battle this a.m. Ethanol margins will remain poor with weaker 
action in nearby corn cash markets not enough to help. Basis is likely to 
weaken further in the short term as fresh cash demand remains weak. The daily 
wire will be watched for further sales with Argentina lifting export 
restrictions with weekly export sales very strong at 1.44 million metric tons. 
On the March contract support is the 20-day at $4.74, with the next level up 
the upper Bollinger Band at $5.35, and the contract high at $5.41 1/2 above 
that.

   SOYBEANS

   Soybeans are 16 to 17 cents higher on the front months and 17 to 18 higher 
for new crop with spread action still a little soft nearby, and new crop 
needing to compete for acres. Meal is 6.00 to 7.00 higher and oil is 30 to 40 
points lower. Basis has started to show pockets of weakness with crush likely 
to take precedence over shipping in coming weeks with crush margins narrowing 
overall although we have seen fresh bookings in recent days. Brazil should 
catch rains short term, with the better action sticking around in Argentina for 
now. Weekly export sales were strong at 908,000 of old crop, 326,000 metric 
tons of new, 337,400 of new meal, 60,000 of new meal, and 11,100 of oil. The 
March chart has resistance at the fresh high at $14.38 then the upper Bollinger 
Band at $14.44, with support the 20-day at 13.08.

   WHEAT

   Wheat trade is 9 to 11 cents higher at midday with active two sided trade 
turning to broad buying and Chicago action regaining the lead at midday. The 
dollar remains above 90 on the index with buying drying up again. The plains 
are expected to see limited moisture with cold scares remaining limited for 
now. Kansas City is at 36-cent discount to Chicago after hitting the tightest 
level in weeks and then reversing, with Minneapolis at -31 backing away from 
the tightest levels seen recently. Weekly export sales were soft at 221,900 
metric tons of old crop, and 10,000 of new. Kansas City March chart support is 
the 20-day at $5.93, and resistance is the fresh high at $6.40.




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