DTN Midday Grain Comments 12/27 11:19

DTN Midday Grain Comments 12/27 11:19 Soybean Futures Strong Following Christmas Weekend Corn trade is 6 to 8 cents higher, beans are 26 to 28 cents higher and wheat is 2 to 6 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow up 200 points. The U.S. Dollar Index is 0.10 firmer. Interest rate products are mixed. Energies are firmer with crude up $2.00. Livestock trade is mixed led by hogs. Precious metals are firmer with gold up $1.50. CORN: Corn trade is 6 to 8 cents higher at midday Monday with trade scoring new highs coming out of the Christmas break with spillover support from soybeans. Ethanol margins should remain in the current range for the balance of the year with support coming from the energies. Basis has shown signs of softness short term with fall field nearly wrapped up and a quieter export wire in recent days with 269,042 metric tons to unknown showing up Monday. Trade will start watching South American weather more as we get closer to the key weather time frames on first crop pollination as well as soybean progress for the timing of double crop planting. Weekly export inspections faded a touch at 719,031 metric tons. On the March contract, we have support at the 20-day moving average at $5.88, then resistance at the upper Bollinger Band at $6.09, which we are above at midday then the fresh high at $6.14 3/4. SOYBEANS: Soybean trade is 26 to 28 cents higher at midday with flat spread action as trade surges to new highs again and weather concerns dominate with support from better product action. Meal is $4.50 to $5.50 higher and oil is 1.85 cents to 2.05 cents higher, supporting crush margins. The daily wire has remained quiet with inspections soft at 1.577 million metric tons. 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 keeping the stressed areas stressed. Basis remains mostly flat short term. On the January soybean chart, we are solidly above the upper Bollinger Band at $13.43 with the fresh high at $13.60 Monday morning as further resistance. WHEAT: Wheat trade is 2 to 6 cents lower at midday with Chicago retaking the lead Monday morning with trade holding the upper end of the range with supportive Northern Hemisphere weather and political factors still intact while Australian harvest continues although Russia/Ukraine tensions have eased a bit. The dollar is just above 96 points in firmer action, with trade off the upper end of the range still. Weather in the Plains looks to remain short of moisture near term with above normal temps keeping stress in play as the crop fades towards dormancy. Spring wheat is softer versus Chicago moving the premium to 2.15 cents on the March, with KC at a 45-cent premium in softer action. Weekly export inspections faded a bit at 272,349 metric tons KC March chart support is at the 20-day at $8.24, which we moved back above Friday with the upper Bollinger Band at $8.66 as Resistance, which we have tested Monday morning. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.