DTN Closing Grain Comments

By Darin Newsom
DTN Senior Analyst

General Comments:

March corn was 5 1/4 cents higher at $3.56 1/2 with December 4 1/2 cents higher at $3.89 1/2. March soybeans finished 6 cents higher at $9.92 1/4 with November up 5 1/2 cents at $10.07 1/2. March Chicago wheat closed 11 1/2 cents higher at $4.33, July Kansas City climbed 10 cents to $4.64 1/4, and March Minneapolis added 3 cents to $6.07 1/2. The U.S. dollar index was 0.91 lower at 89.20 while March 30-year T-bonds lost 21/32 to 148'18. February gold was $22.30 higher at $1,359.00 with March silver up $0.637 and February copper gaining $0.1170. The Dow Jones Industrial Average added 29 points to 26,239. March crude oil rallied $1.13 to $65.60. The February distillates (heating oil) contract was $0.0198 higher, February RBOB gasoline gained $0.0046, and February natural gas jumped another $0.94.

Corn:

Corn rallied early in Wednesday's session and was able to maintain its gains throughout the day. Much of the buying was tied to the weaker U.S. dollar, allowing a short-term uptrend on daily charts for both old-crop March and new-crop December to strengthen. The next target for March is up at $3.60 1/2, the high from Dec. 4, and $3.91 for December. Daily trade volume for March climbed to 312,216 contracts as compared to Tuesday's 204,570 contracts and the previous Wednesday's 236,713 contracts. If national average basis holds steady or strengthens Wednesday evening, look for follow-through support into the overnight session.

Soybeans:

Soybeans had a sluggish start to the day, but once the market got rolling contracts quickly raced higher. Old-crop March reached as high as $9.94 3/4, up 8 1/2 cents for the day, while new-crop November posted a maximum gain of 7 1/4 cents at $10.09 1/4. Both contracts could still be nearing the end of short-term uptrends on their respective daily charts with daily stochastics showing overbought situations. As with other commodities, much of Wednesday's rally was attributed to the weaker U.S. dollar. Whether or not it generates increased export sales interest remains to be seen. Look for the overnight session to see initial follow-through buying interest.

Wheat:

Winter wheat markets rocketed higher Wednesday, led by an 11 1/2 cent gain by old-crop Chicago wheat. While much of the buying was tied to the collapsing U.S. dollar index, the Chicago March-to-May futures spread also suggests light commercial buying interest. As for new crop, the July Kansas City contract posted a gain of 10 cents as it tries to confirm the uptrend on its weekly chart. To do so the contract needs to move beyond its recent high of $4.70 3/4, finishing Wednesday at $4.64 1/4. Minneapolis spring wheat was quieter with the nearby March able to rally only 3 1/2 cents. New-crop September posted a gain of 5 1/4 cents as it looks to bottom out on its weekly chart.

Darin Newsom can be reached at darin.newsom@dtn.com

Follow Darin Newsom on Twitter @DarinNewsom

(BAS)

Copyright 2018 DTN/The Progressive Farmer. All rights reserved.