DTN Midday Grain Comments 12/05 10:52

DTN Midday Grain Comments 12/05 10:52 Corn, Wheat Lower, Soybeans Higher Midday Monday Corn trade is 4 to 5 cents lower; beans are 5 to 6 cents higher and wheat is 8 to 17 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 4 to 5 cents lower; beans are 5 to 6 cents higher and wheat is 8 to 17 cents lower. The U.S. stock market is weaker with the Dow down 280 points. The dollar index is 60 points higher. Interest rate products are weaker. Energies are weaker with crude down 0.80 and natural gas down 0.50. Livestock trade is mostly higher. Precious metals are weaker with gold down 23.00. CORN: Corn trade is 4 to 5 cents lower at midday with selling returning after initial stronger trade as oversold conditions and demand concerns persist. The daily export wire will be watched to see if sales pick up again with little action last week and weekly inspections remaining soft at 524,313 metric tons. Ethanol margins remain rangebound with corn values and driving demand expected to slow further until closer to Christmas travel with sliding unleaded values crimping blender margins. Fall fertilizer application should be about wrapped up. Basis has faded as transportation issues get worked on with the West starting to soften even more as end users build coverage. Dry weather in Argentina is raising some concern for their crop short term with some relief potentially on the horizon. On the March chart, trade is just below the lower Bollinger Band at 6.50 with the fresh low at $6.41 and the 20-day above current action at $6.65. SOYBEANS: Soybean trade is 5 to 6 cents higher at midday with trade working to build on the Friday rebound. Trade is still away off the recent highs, with Brazil production estimates moving higher, while Argentina sees more short term concern. Meal is 8.00 to 9.00 higher and oil is 120 to 130 points higher. 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. 130,000 metric tons were sold on the daily wire and weekly export inspections were a little softer at 1.722 million metric tons. On the January chart, trade is working just above the 20-day at $14.42 with the Upper Bollinger Band above current action at $14.76, as well as the fresh high at $14.78, and further support the lower Bollinger Band at $14.15. WHEAT: Wheat trade is 8 to 17 cents lower with early strength giving way to fresh lows again oversold conditions persist with little other changes worldwide. The dollar found strength again after early weakness. 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 values have slipped as well, reducing their premium. On the chart, KC March action has faded well below the 20-day at $9.18 and the lower Bollinger band at $8.68 is further support with the fresh low at 8.51 scored this 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.