DTN Midday Grain Comments 12/22 11:04

DTN Midday Grain Comments 12/22 11:04 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 1 to 2 cents higher at midday Wednesday; soybean futures are 16 to 18 cents higher; wheat futures are flat to 10 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents higher at midday Wednesday; soybean futures are 16 to 18 cents higher; wheat futures are flat to 10 cents higher. The U.S. stock market is firmer with the Dow up 150 points. The U.S. Dollar Index is 40 lower. Interest rate products are firmer. Energies are firmer with crude up .80. Livestock trade is firmer. Precious metals are firmer with gold up 9.00. CORN: Corn futures are 1 to 2 cents higher at midday with trade pressing into fresh highs again Wednesday morning with concerns about South American weather and spillover support from soybeans and wheat before fading a little bit at midday. Ethanol margins should remain in the current range for the balance of the year, with the weekly report showing production down 36,000 barrels per day (bpd) and stocks down 178,000 barrels. Basis has shown signs of short-term softness with fall fieldwork nearly wrapped up and a quieter export wire in recent days. Trade will start watching South American weather more as we get closer to the key weather time frames on new crop as well as soybean progress for the timing of double-crop planting. On the March contract we have support at the 20-day moving average at $5.87, then the upper Bollinger band at $6.02. SOYBEANS: Soybean futures are 16 to 18 cents higher at midday with trade scoring new highs for the move even as we see weaker spread action with products leading the rally along with weather concerns in South America. Meal is $7.00 to $8.00 higher and oil is 50 to 60 points higher, supporting crush margins. The daily export wire has been quiet this week. South America will continue to see dry areas to the south, with the northern growing areas in better shape for now and the recent weather patterns remaining mostly intact. Basis remains mostly flat in the short term. On the January soybean chart, we are solidly above the Upper Bollinger band at $13.13 with the fresh high at $13.33 Wednesday morning. WHEAT: Wheat futures are flat to 10 cents higher at midday with Chicago action edging into the lead and overall fresh news limited with Northern Hemisphere weather supportive and Australian harvest progressing. The dollar is just above 96 in softer action, keeping trade off the upper end of the range. Plains weather looks to remain short of moisture in the near term with above normal temps keeping stress in play as the crop fades towards dormancy. Spring wheat is weaker vs. Chicago, moving the premium to $2.16 on the March, with KC at a 39-cent premium in softer action. KC March chart support is at the 20-day moving average at $8.25, which we moved back above Tuesday; the upper Bollinger band at $8.71 is resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.