DTN Midday Grain Comments 01/06 10:49

DTN Midday Grain Comments 01/06 10:49 Corn, Soybean, Wheat Futures All Lower Corn futures are 2 to 3 cents lower at midday Thursday; soybean futures are 12 to 13 cents lower; wheat futures are 21 cents to 26 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow down 125 points. The U.S. Dollar Index is 5 points higher. Interest rate products are weaker. Energies are firmer with crude up 1.90. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold down 35.50. CORN: Corn futures are 2 to 3 cents lower at midday with trade holding above $6.00. There is ag futures weakness Thursday morning and flat spread action with corn holding up the best so far. Ethanol margins are fading with lower ethanol premiums into the new year and demand soft with a large stocks build reporter Wednesday continuing to pressure margins. Basis should remain rangebound with some areas of weakness on ethanol margins potentially showing. Trade will continue 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. First crop estimates were cut by private sources earlier in the week. Weekly export sales were poor at 256,100 metric tons (mt). On the March contract we have support at the 20-day moving average at $5.97 then the upper Bollinger band at $6.13 as further resistance. SOYBEANS: Soybean futures are 12 to 13 cents lower at midday with volatility continuing as meal values drag trade lower, along with ideas that significant weather premiums may be priced in. Meal is $3.50 to $4.50 lower and oil is 25 to 35 points lower. Basis remains mostly flat in the short term. The daily export wire reported an old-crop sale of 102,000 mt to Mexico Thursday morning. South American weather remains wetter to the north and drier to the south. Weekly export sales were poor at 382,700 mt old crop; 67,100 new; 31,500 of old meal; 300 new meal; and 2,900 old-crop oil and 100 new. On the March soybean chart, we have resistance at the fresh high at $13.99 1/2 which we scored Wednesday, and the 20-day moving average at $13.25 as support. WHEAT: Wheat futures are 21 to 26 cents lower at midday with trade fading deeper into support levels with broad selling and little fresh bullish news to push wheat. The dollar continues to grind right around 96 on the index, limiting upside. Plains weather looks drier with a little snow cover out of the last system, while temps continue to fluctuate, keeping stress intact with other Northern Hemisphere weather concerns fading. Spring wheat is firmer vs. Chicago, moving the premium to $1.89 on the March, with KC at a 24-cent premium in softer action. Weekly export sales were poor at 48,600 mt of old and 2,500 of new. KC March chart resistance is at the 20-day moving average of $8.13, which we are solidly below, with the lower Bollinger band at $7.69 as further support, which we a below at midday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.