DTN Midday Grain Comments 12/13 10:53

DTN Midday Grain Comments 12/13 10:53 Corn, Soybeans, Wheat Higher at Midday Corn futures are 2 to 3 cents higher at midday Tuesday; soybean futures are 18 to 19 cents higher; wheat futures are 4 to 10 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents higher at midday Tuesday; soybean futures are 18 to 19 cents higher; wheat futures are 4 to 10 cents higher. The U.S. stock market is firmer with the DOW up 285 points. The U.S. Dollar Index is 135 points lower. Interest rate products are firmer. Energies are sharply higher with crude up 2.35 and natural gas .45 higher. Livestock trade is firmer. Precious metals are firmer with gold up $32.00. CORN: Corn futures are 2 to 3 cents higher at midday with light buying continuing as trade eases oversold conditions and presses into nearby resistance levels but has been unable to consolidate through so far. Ethanol margins continued to be crimped by falling blender margins and unleaded values at the lower end of the range amidst demand concerns while natural gas surges with the coming cold snap. Dry weather in Argentina is raising some concern for their crop short term with some recent rains and warmer drier weather to return near term. The daily export wire has been quiet in recent days. Spread action has been flat to firmer so far. Basis continues to deflate slowly in the west but remains well above average. On the March chart, support is at our recent 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 $6.58 20-day moving average, which we have tested Tuesday morning. SOYBEANS: Soybean futures are 18 to 19 cents higher at midday with trade bouncing back from the soft start to the week to continue to hold the upper end of the range as trade waits for South American crop development, along with short term export pace while products work to rebalance a bit. Meal is $2.50 to $3.50 higher and oil is 150 to 170 points higher after easing back from sharply overbought and oversold conditions respectively to start the week. Brazil looks to remain in good shape short term, while the Argentina improvement may be fleeting with hotter and dry weather expected to return. On the daily export wire we saw 140,000 metric tons (mt) sold to unknown for new crop. Basis remains mostly sideways near term. January chart support is at the $14.49 20-day moving average with resistance at the $14.88 upper Bollinger band and then the $14.93 3/4 two-month high, scored this Friday. WHEAT: Wheat futures are 4 to 10 cents higher at midday with trade continuing to ease oversold conditions after the strong start to the week with another positive finish needed to build seasonal momentum with trade fading a little bit off the early session highs. The Plains look to remain mostly dry short term with cooler and wetter potential the second week for the north and east as the crop heads towards dormancy. Southern Hemisphere harvest continues to move ahead with mixed results so far. Matif wheat values are holding rangebound as well at the lower end of their recent range while we watch for further political developments in the Black Sea region with continued strikes on civilian targets and grain corridor talks. On the chart, KC March has support at the lower Bollinger band at $8.13 with further support with the fresh low at $8.27 scored Tuesday. Resistance is at the $8.90 20-day moving average. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.