DTN Midday Grain Comments 12/06 10:44

DTN Midday Grain Comments 12/06 10:44 Corn, Beans Up; Wheat Lower Midday Tuesday Corn trade is 1 to 2 cents higher; beans are 25 to 27 cents higher and wheat is 1 to 5 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 1 to 2 cents higher; beans are 25 to 27 cents higher and wheat is 1 to 5 cents lower. The U.S. stock market is weaker with the Dow off 235 points. The U.S. Dollar Index is 0.20 lower. Interest rate products are firmer. Energies are weaker with crude off $1.95 and natural gas off $0.15. Livestock trade is sharply lower. Precious metals are firmer with gold up $5.00. CORN: Corn trade is 1 to 2 cents higher at midday Tuesday with trade still working to build footing after washing to lows again Monday, with spillover support from soybeans while wheat continues to be a drag. The daily export wire will be watched to see if sales pick up again with nothing to start the week. 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 6.44 with the fresh low at $6.37 3/4 and the 20-day above current action at $6.63. SOYBEANS: Soybean trade is 25 to 27 cents higher at midday with firmer spread action as crush margins are led by meal, and South American weather continues to come further into focus, along with improved demand optimism on reduced China COVID curbs. Meal was $19.50 to $20.50 higher and oil is 0.60 cent to 0.80 cent lower. Basis has held together well with little change in recent days. The daily export wire has been active to start the week with 264,000 metric tons China and 240,000 to unknown. On the January chart, trade is back above the 20-day at $14.41 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 1 to 5 cents lower with KC lagging again as trade looks for short covering amid deeply oversold conditions and little other fresh news with trade chopping mostly lower during the day session The dollar remains in the lower end of the recent range with weakness so far today. 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, but they have maintained a premium. On the chart, KC March action has faded well below the 20-day at $9.11 and the lower Bollinger Band at $8.47 is further support with the fresh low at $8.27 scored Tuesday below that. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.