DTN Midday Grain Comments 12/01 10:50

DTN Midday Grain Comments 12/01 10:50 Soybeans Down Over 30 Cents Midday Thursday Corn trade is 4 to 5 cents lower; beans are 33 to 34 cents lower and wheat is 6 to 8 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 4 to 5 cents lower; beans are 33 to 34 cents lower and wheat is 6 to 8 cents lower. The U.S. stock market is mostly lower with the Dow off 325 points. The U.S. Dollar Index is 1.00 lower. Interest rate products are firmer. Energies are mostly higher with crude up $2.20 and natural gas off $0.02. Livestock trade is mixed with hogs higher. Precious metals are firmer with gold up $51.00. CORN: Corn trade is 4 to 5 cents lower at midday with spillover pressure from soybeans dragging action lower. The daily export wire will be watched to see if sales pick up again as we fade to the lower end of the range and come out of the holiday break. There has been nothing to start the week and weekly export sales were OK for a short week at 602,700 metric tons of old crop, and 30,000 of new -- and 114,300 metric tons sold to Mexico on the daily wire. Ethanol margins remain rangebound with corn values and driving demand expected to slow further until closer to Christmas travel. Fall fertilizer should be able to make better progress short term as temps fluctuate in the near term. Basis has remained steady as transportation issues get worked on with the West starting to soften more as end users build coverage. Dry weather in Argentina is raising some concern for their crop short term. On the March chart, trade is solidly above the lower Bollinger Band at 6.54 with the fresh low at $6.54 1/2 as well and the 20-day just above current action at $6.69. SOYBEANS: Soybean trade is 33 to 34 cents lower at midday with trade falling off the high end of the range with better weather expected for Brazil while Argentina struggles and soyoil washes as biofuels expansion may not be as aggressive as hoped near term on blending targets. Meal is $1.00 to $2.00 lower and oil is 4.50 cents lower. Basis has held together well with little change in recent days. The daily export wire has been limited in recent days with China demand likely to be an ongoing concern with the continued shutdowns and unrest going forward. Weekly export sales were a little soft at 693,800 metric tons of beans, 185,200 of old crop meal, -15,700 of new meal, and -2,300 of oil. On the January chart, trade is working back below the 20-day at $14.44 with the upper Bollinger Band above current action at $14.74, as well as the fresh high at $14.78, and further support the lower Bollinger Band at $14.15. WHEAT: Wheat trade is 6 to 8 cents lower at midday with trade scoring fresh lows again before bouncing back to the middle of the week range with support from the dollar and spillover pressure from the row crops. The dollar fading from the highs should add some support if we can remain at the lower end of the range after the Fed statement on slower rate hikes. The Plains look to remain mostly dry short term with cooler and wetter potential the second week. Southern Hemisphere harvest will be moving forward soon with quality issues in Australia and drought losses in Argentina. Matif wheat is trying to sustain momentum as well with slightly softer action so far today. Weekly export sales remained tepid at 155,200 metric tons of old crop and 7,000 of new. On the chart, KC March action has faded well below the 20-day at $9.26 and the lower Bollinger band at $8.85 is further support with the fresh low at $8.81 3/4 scored Thursday morning just below that. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.