DTN Midday Grain Comments 12/31 10:47

DTN Midday Grain Comments 12/31 10:47 Corn, Soybeans Look to End 2021 in the Green Corn trade is 1 to 2 cents higher, beans are 5 to 6 cents higher and wheat is 5 to 8 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 30 points. The U.S. Dollar Index is 0.30 lower. Interest rate products are firmer. Energies are mixed with crude down $0.60. Livestock trade is mixed with feeder cattle leading. Precious metals are firmer with gold up $9.10. CORN: Corn trade is 1 to 2 cents higher at midday Friday with quiet action to close out the year and less spillover from soybeans. Ethanol margins should remain in the current range into the new year with signs of short-term driving demand softening. Basis has shown signs of softness short term with year-end movement about wrapped up, and weather set to limit action in some areas short term. 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 $5.94, then the upper Bollinger Band at $6.11 as resistance then the fresh high at $6.17 3/4. SOYBEANS: Soybean trade is 5 to 6 cents higher at midday as the January contract heads into delivery with flat to firm spread action as trade looks to consolidate the Thursday washout into year end. Better forecasts for South America are lingering along with demand concerns short term. Meal is narrowly mixed and oil is 0.50 cent to 0.60 cent higher. South America will continue to see dry areas to the south with some showers expected to work through, with the northern growing areas in better shape for now. Basis remains mostly flat short term with the export wire quiet. On the March soybean chart, we are back below the upper Bollinger Band at $13.81 with the fresh high at $13.84 1/2 from Tuesday as further resistance, and the 20-day well below the market at $13.02. WHEAT: Wheat trade is 5 to 8 cents lower at midday with sideways action expected into the end of the year as fresh news lacks on the weather or political fronts. The dollar is just below 96 points in flat action, keeping trade off the upper end of the range. Weather on the Plains looks to see some snow cover develop across with more winter like temps. Spring wheat is firmer versus Chicago moving the premium to 2.15 cents on the March, with KC at a 34-cent premium in firmer action. KC March chart resistance is at the 20-day at $8.20, which we are just below with the lower Bollinger Band at $7.83 as further support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.