DTN Midday Grain Comments 01/11 10:55

DTN Midday Grain Comments 01/11 10:55 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 2 to 3 cents higher at midday Tuesday; soybean futures are 7 to 8 cents higher; wheat futures are 6 to 18 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow down 35 points. The U.S. Dollar Index is 30 points lower. Interest rate products are firmer. Energies are firmer with crude up 2.50. Livestock trade is firmer with cattle leading. Precious metals are firmer with gold up 15.00. CORN: Corn futures are 2 to 3 cents higher at midday Tuesday with trade continuing to hold above $6.00 with pre-report position-squaring likely to continue. Ethanol margins will continue to be squeezed by tepid short-term demand. Basis should remain rangebound to slightly weaker in the short term with warmer midweek weather to help movement. 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. Report expectations are for stocks at 11.6 billion bushels (bb) vs. 11.29 bb last year, with carryout at 1.472 bb. Support on the March contract is at the 20-day moving average of $5.99; the upper Bollinger band at $6.15 is further resistance. SOYBEANS: Soybean futures are 7 to 8 cents higher at midday with two-sided action, along with firmer spread action as trade works to balance short-term heat, improved medium-term forecasts and where demand is ahead of the report. Meal is $1.00 to $2.00 higher and oil is 60 to 70 points higher. Basis remains mostly flat in the short term with Tuesday's export wire showing 100,000 metric tons (mt) sold to Mexico. Crush margins remain solid with future renewable diesel demand likely to keep good support under oil. On the report, trade is looking for stocks of 3.13 bu vs. 2.95 bb last year, and domestic carryout at 348 million bushels (mb). On the March soybean chart, we have resistance at the fresh high at $14.15, which we scored Friday, and the 20-day moving average is well below the market at $13.43 as support. WHEAT: Wheat futures are 6 to 17 cents higher with Minneapolis trade retaking the lead at midday with broad short-covering in pre-report action as trade finds buying pre-report. The dollar has faded back from the highs with little surprise in recent Fed statements. 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 for the moment. On the report, wheat stocks are expected to be at 1.42 bu vs. 1.70 bb last year, and domestic carryout at 608 mb, and winter wheat acres at 34.255 million vs. 33.65 million last year. Spring wheat is firmer vs. Chicago, moving the premium to $1.61 on the March, with KC at a 22-cent premium in firmer action as well. KC March chart support is the lower Bollinger band at $7.56 with the 20-day moving average at $8.08 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.