DTN Midday Grain Comments 12/07 11:25

DTN Midday Grain Comments 12/07 11:25 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 1 to 2 cents higher at midday Wednesday; soybean futures are 6 to 7 cents higher; wheat futures are 15 to 20 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents higher at midday Wednesday; soybean futures are 6 to 7 cents higher; wheat futures are 15 to 20 cents higher. The U.S. stock market has been mixed with the DOW off 25 points at midday. The U.S. Dollar Index is 33 points lower. Interest rate products are firmer. Energies are weaker with crude off 1.55 and unleaded down 5 cents. Livestock trade is mixed. Precious metals are firmer with gold up $13. CORN: Corn futures are 1 to 2 cents higher at midday with a mixed session with a lower low but also a slightly higher high than Tuesday. The market is waiting for some fresh news with the technical picture now in oversold territory. The USDA WASDE is due out on Friday with the trade expecting a light increase in the carryover, which the trade argues is priced-in with our recent lower trade. Dry weather in Argentina is raising some concern for their crop short term with some relief potentially on the horizon. On the March chart, support is at our daily low of $6.35 with other notable longer-term lows at the $6.12 early August low and then the $5.69 July low. Resistance is at the $6.57 10-day moving average then the $6.61 20-day moving average. SOYBEANS: Soybean futures are 6 to 7 cents higher at midday after trading close to 15 cents higher. Meal is up $3.50 and soybean oil is down 45 points. Meal and oil trends remain on opposite courses and promise to keep the product futures trade active. Traders expect some volatile trade, especially Friday around the WASDE report after March meal has moved from around $400 up to $450 over the past two weeks with soybean oil down near 60 after trading above 70. The market is expecting very little change on the December WASDE Friday from the November soybean carryover numbers. On the January beans the trend remains strongly sideways with support from meal offset with pressure from bean oil and slipping outside market influence. January chart support is at the $14.42 20-day moving average with resistance at the $14.70 upper Bollinger band and then the $14.78 1/2 two-month high. WHEAT: Wheat futures are 15 to 20 cents higher at midday with short profit-taking and some spillover support from beans and corn. Wheat remains oversold even with the nice bounce so far Wednesday morning. The Plains look to remain mostly dry short term with cooler and wetter potential the second week as the crop heads towards dormancy. Market bulls hope Southern Hemisphere harvest attention may help turn the downward market trend in wheat with quality issues in Australia and drought losses in Argentina. Matif wheat values have been weaker as well, but they have maintained a premium to U.S. action. The recent lower dollar and lower futures have bulls hopeful export business will pick up. On the chart, KC March has support at the lower Bollinger band at $8.36 with further support with the fresh low at 8.27 scored Tuesday. Resistance is at the $8.79 10-day moving average. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.