DTN Midday Grain Comments 01/19 10:43

DTN Midday Grain Comments 01/19 10:43 Corn, Wheat Steady to Higher at Midday; Soybeans Lower Corn trade is flat to 1 cent higher; beans are 7 to 11 cents lower, and wheat trade is flat to 7 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is flat to 1 cent higher; beans are 7 to 11 cents lower, and wheat trade is flat to 7 cents higher. The U.S. stock market is weaker with the DOW down 250 points. The Dollar Index is unchanged. Interest rate products are weaker. Energies are flat for crude and natural gas. Livestock trade is weaker. Precious metals are firmer with gold up 14.50. CORN: Corn trade is flat to 1 cent higher with quiet trade as we pull back from the early week highs with spread action remaining flat to firmer and light two-sided action so far. Ethanol margins will need demand to improve to support production near term with blender margins showing a little improvement on recent unleaded strength with the weekly report showing improvement with production up by 65,000 barrels per day while stocks were down by 398,000 barrels. Crop development will continue to be watched in Argentina as pace and conditions lag last year with better short-term development expected. The daily export wire showed 195,000 metric tons sold to Mexico for sold crop. Basis has stabilized in the west with above average action holding up overall. On the March chart, support is at the $6.67 20-day moving average which we moved above last week with the upper Bollinger Band at $6.89 the next round up, which we have faded from yesterday with a fresh high for the move being scored at $6.88 3/4. SOYBEANS: Soybeans are 7 to 11 cents lower at midday with trade fading back from the upper end of the range with expected improvements to South American weather and little change to the immediate demand picture, but continuing to show strength in spread action. Meal is 3.00 to 4.00 lower and oil 95 to 125 points lower narrowing crush margins a little bit. The daily export wire was quiet again Thursday. South American weather looks for some relief in the drier areas short term with Argentina concerns likely to ease further while early harvest starts in Brazil. Basis remains mostly sideways near term. March chart support is at the $15.00 20-day continues to hold, with the Upper Bollinger Band at $15.41 which we have pulled back from yesterday with the new high at $15.48 1/2. WHEAT: Wheat trade is flat to 7 cents higher with Minneapolis action taking the lead as we chop around the mid-part of the recent range with little fresh news to move wheat but trade able to firm back from early weakness. The Southern Plains should show improvement over the next couple of weeks with no extreme cold expected, while Europe and the Black Sea see mixed weather as we move deeper into winter along with some talk of Russia slowing export pace. Matif wheat values continue to struggle with U.S. values limiting export potential further. On the chart, KC March has resistance at the 20-day moving average at $8.51 which we faded back below during the day session, with the fresh low at $8.03 from a week ago as support with the lower Bollinger band at $8.09. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.