DTN Midday Grain Comments 01/05 10:54

DTN Midday Grain Comments 01/05 10:54 Corn, Wheat Futures Lower at Midday; Soybeans Higher Corn futures are 5 to 6 cents lower at midday Wednesday; soybean futures are 1 to 2 cents higher; wheat futures are 11 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow up 65 points. The U.S. Dollar Index is 25 points lower. Interest rate products are mixed. Energies are firmer with crude up 1.30. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up 9.50. CORN: Corn futures are 5 to 6 cents lower at midday with trade pulling back from the upper end of the range on softer spread action with spillover pressure from the wheat and support from the soybeans. Ethanol margins are fading with lower ethanol premiums and demand soft to start the new year with the weekly report showing production down 11,000 barrels per day (bpd) and stocks 638,000 barrels higher. Basis should remain rangebound to start the new year. Trade will continue watching South American weather more as we get closer to the key weather time frames for new crop as well as soybean progress for the timing of double-crop planting into later spring with first crop estimates cut by private sources earlier in the week. On the March contract we have support at the 20-day moving average at $5.95, which we surged past Tuesday, then the upper Bollinger band at $6.13 as further resistance. SOYBEANS: Soybean futures are 1 to 2 cents higher at midday with trade seeing two-sided action as another round of fresh highs is scored as weather premiums and soyoil action support trade. Meal is $1.00 to $2.00 lower and oil is 90 to 100 points higher, holding crush margins together. Basis remains mostly flat in the short term with the daily export wire reporting a new-crop sale of 132,000 metric tons (mt) today. South American weather remains wetter to the north and drier to the south after some showers worked through. On the March soybean chart, we have resistance at the fresh high at $13.99 1/2, which we scored Wednesday morning, and the 20-day moving average well below the market at $13.18 as support. WHEAT: Wheat futures are 11 to 18 cents weaker at midday with trade fading deeper into support levels on broad selling and little fresh bullish news to push wheat. The dollar continues to grind right around 96 on the index, limiting buying enthusiasm. Plains weather looks drier with a little snow cover out of the last system, while temps continue to fluctuate, keeping stress intact. Spring wheat is soft vs. Chicago, moving the premium to $1.97 on the March, with KC at a 17-cent premium in softer action. KC March chart resistance is at the 20-day at $8.16 which we are solidly below with the lower Bollinger band at $7.74 as further support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.