DTN Midday Grain Comments 01/07 11:00

DTN Midday Grain Comments 01/07 11:00 Corn, Soybean Futures Higher at Midday; Wheat Mixed Corn futures are 3 to 4 cents higher at midday Friday; soybean futures are 23 to 24 cents higher; wheat futures are 6 cents lower to 4 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow up 5 points. The U.S. Dollar Index is 40 points lower. Interest rate products are weaker. Energies are mixed with crude down .20. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up 1.00. CORN: Corn futures are 3 to 4 cents higher at midday with trade holding above $6.00 with early weakness giving way to buying again with spillover support from the soybeans. Ethanol margins are fading with lower ethanol premiums as demand is soft to start the year. 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 for 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. Mexico bought 176,784 metric tons (mt) of old crop corn as reported on the daily export wire. On the March contract, we have support at the 20-day moving average at $5.98, then the upper Bollinger band at $6.14 as further resistance. SOYBEANS: Soybean futures are 23 to 24 cents higher at midday with buying flooding back in as weather concerns pick up, along with significant strength in meal yet again. Meal is $13.50 to $14.50 higher and oil is 20 to 30 points higher. Basis remains mostly flat in the short term with the export wire reporting 120,000 mt of new-crop soybeans sold to unknown. South American weather remains wetter to the north and drier to the south. On the March soybean chart, we have resistance at the fresh high of $14.13 1/2, which we scored Friday morning, and the 20-day moving average, well below the market at $13.32, is support. WHEAT: Wheat futures are 6 cents lower to 4 cents higher; spillover support is trying to drag trade back off the lows. 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. Other Northern Hemisphere weather concerns are fading for the moment. Spring wheat is weaker vs. Chicago, moving the premium to $1.67 on the March, with KC at a 19-cent premium in softer action. KC March chart resistance is the lower Bollinger band at $7.58, which we are back above at midday; the 20-day moving average at $8.11 is still well above the market. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.