DTN Early Word Grains 01/22 05:58
A Bullish Blizzard
March corn was 1 cent higher, March soybeans were 7 cents higher, and March Chicago (SRW) wheat was 3 cents higher.
By Darin Newsom DTN Senior Analyst
6:00 a.m. CME Globex: March corn was 1 cent higher, March soybeans were 7 cents higher, and March Chicago (SRW) wheat was 3 cents higher.
CME Globex Recap: As a massive winter storm swirls and blows across the U.S. Southern Plains and Midwest, the grain and oilseed complex traded higher overnight. Soybeans led the way with contracts sitting at or near session highs early Monday morning. Wheat markets were also higher, with Chicago (SRW) taking the lead, while corn also tried to rally. As for the shutdown of the U.S. federal government, the U.S. dollar was weaker overnight and DJIA futures were showing losses.
OUTSIDE MARKETS: The Dow Jones Industrial Average closed 53.91 points (0.2%) higher at 26,071.72, the NASDAQ Composite gained 40.33 points (0.5%) to 7,336.38, and the S&P 500 rallied 12.27 points (0.4%) to 2,810.30 Friday. DJIA futures were 51 points lower early Monday morning. Asian markets closed higher with Japan's Nikkei 225 up 8.27 points and China's Shanghai Composite adding 13.50 points (0.4%). European markets were trading mostly higher with London's FTSE 100 up 3.94 points, Germany's DAX up 1.71 points, and France's CAC 40 off 1.41 points. The U.S. dollar index fell another 0.23 to 90.45. March 30-year T-Bonds were 8/32 lower at 148'24 while February gold was unchanged at $1,333.10. Crude oil was $0.03 higher at $63.40 while Brent crude lost $0.02 to $69.59. China's Dalian soybean futures were lower and Malaysian palm oil futures were higher overnight.
DTN Midday Grain Comments 01/22 11:43
Grains Mixed At Midday
Soybeans are the midday leader, with corn and wheat flat to lower.
By David Fiala DTN Contributing Analyst
U.S. stock market indices are mixed at midday with the Dow futures down 8 points. The interest rate products are lower. The dollar index is 15 lower. Energies are higher with crude up 0.65. Livestock trade is mostly higher. Precious metals are mixed with gold 0.50 higher.
Corn trade is fractionally lower at midday with trade chopping right around the 50-day moving average in light two-sided trade. Ethanol margins are slightly tighter with ethanol futures slightly lower. Basis is expected to be steady to start the week with corn movement slow to start. Blizzard conditions will support livestock consumption but warmer weather is expected again on the backside of the system. With the government shutdown, export inspections were still released today from last week, but will be postponed coming forward if the shutdown continues, with 668,946 metric tons moved last week. On the March chart support is the 50-day at $3.52 we closed above to close last week, with the 20-day at $3.51 below that, and resistance at the 100-day at $3.58. March futures have been in an 8 1/2 cent trading range for the past six weeks.
Soybean trade is 5 to 8 cents higher at midday with the March contract testing resistance to open the week with drier weather in Argentina continuing in the immediate term. Meal is $5.00 to $6.00 higher and oil is 5 to 15 points higher. South American weather looks to continue the recent pattern with more improvement expected in the north later in the week. Basis and carry remains mostly sideways. Export inspections were the best in a month at 1.419 million metric tons. On the March, support is the 10-day and 20-day $9.65 and resistance the 200-day at $9.79, which we have moved above overnight, along with the 50-day at $9.83, with the 100-day at $9.86 above that which we are testing at midday.
Wheat trade is mixed at midday with the market reluctant to extend gains so far with corn turning weaker. Warmer weather should be the rule in the near term, but moisture will likely remain short in the near term for much of the plains. The dollar remains below 91 on the index with the trend still lower, with rallies being sold especially with the government shut down ongoing. The gap between U.S. and Russian origin has narrowed but remains more favorable to Russia. Weekly export inspections improved slightly to 337,980 metric tons. On the March Kansas City contract, chart support is the lows at $4.10, with the weekly low of $4.21 becoming nearby support with the 10,20, and 50-day moving averages concentrated at $4.30 which we are tested overnight.
David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at email@example.com Follow him on Twitter @davidfiala
Copyright 2018 DTN/The Progressive Farmer. All rights reserved.
USDA MARKET NEWS--AFTERNOON CATTLE REPORT 01/22/18
VOLUME USDA TOTAL RANGE DTN PRACTICAL RANGE WT AVG KANSAS CONFIRMED CASH SALES - TODAY: 0 WEEK T0 DATE: 0 STEERS No reportable trade HEIFERS No reportable trade
NEBRASKA CONFIRMED CASH SALES - TODAY: 0 WEEK TO DATE: 0 STEERS No reportable trade HEIFERS No reportable trade
TEXAS CONFIRMED CASH SALES - TODAY: 0 WEEK TO DATE: 0 STEERS No reportable trade HEIFERS No reportable trade
COLORADO CONFIRMED CASH SALES - TODAY: 0 WEEK TO DATE: 0 STEERS No reportable trade HEIFERS No reportable trade
IOWA CONFIRMED CASH SALES - TODAY: 35 WEEK TO DATE: 35 STEERS No reportable trade HEIFERS No reportable trade
COMMENTS: A typical Monday with the cash trade at a standstill
5-AREA LV STR AVE PR&WT: $122.92(1460) HIDE&OFFAL: $10.66 Unchg CARCASS EQV INDEX CHOICE (600-900#) SELECT (600-900#) #OF HD LIVE BASED 183.18 176.92 73,844 BOX BASED 193.07 187.52 47,939 AVE INDEX 188.13 +2.64 182.22 +2.78 121,783 BEEF CUTOUTS CHOICE (600-900#) SELECT (600-900#) 205.07 +0.21 199.52 -0.64 55.72 LDS CH CUTS / 20.97 LDS SEL CUTS / 20.12 LDS TRIM / 11.79 LDS GROUND BOXED BEEF TREND: Stdy/wk on lt-mod dem & mod offers COMPREHENSIVE WEEKLY CUTOUT VALUE: Week ending 01/19 $205.46 -1.79 CUTTER 90% 350# UP C/O: $170.57 +0.47 NAT'L BONELESS BF TRIM: 80.00 lds / Unevenly stdy on mod dem & hvy offers 90% TRIM: 38 lds: Wtd Avg $214.14 / Firm to higher FI KILL(WTD) MON 88( 88) WK AGO 118(118) YR AGO 113(113) MIX: FRI SH94/CB23 SAT SH15/CB12 WEEKLY CANADIAN CATTLE IMPORTS. FEEDERS SLAUGHTER S&H Week Ending: 01/06/18 285 4,217 Week Ending: 12/30/17 110 1,641 Change from prev week: +175 +2,576