DTN Midday Grain Comments 12/14 10:47

DTN Midday Grain Comments 12/14 10:47 Corn, Wheat Lower; Soybeans Higher Midday Wednesday Corn trade is 2 to 3 cents lower; beans are 3 to 4 cents higher and wheat trade is 4 to 17 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 2 to 3 cents lower; beans are 3 to 4 cents higher and wheat trade is 4 to 17 cents lower. The U.S. stock market is firmer with the Dow up 235 points. The U.S. Dollar Index is 0.20 lower. Interest rate products are mixed. Energies are mostly higher with crude up $2.05 and natural gas $0.35 lower. Livestock trade is mixed. Precious metals are mixed with gold off $3.00. CORN: Corn trade is 2 to 3 cents lower at midday Wednesday with trade fading back from nearby resistance after the weak close on Tuesday, but able to battle back from the early session lows with little fresh news. 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 bounced with the cold snap, and the weekly report showed production off 16,000 barrels per day, with stocks up by 1.152 million barrels. 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 before moderating again. The daily export wire has been quiet in recent days. Spread action has been softer Wednesday after recent firmness. 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 $6.57 20-day moving average, which we faded from Tuesday. SOYBEANS: Soybean trade is 3 to 4 cents higher at midday with trade continuing to chop along the upper end of the range in two-sided action as product trade favors meal again, and we wait for further weather developments in South America. Meal is $3.50 to $4.50 higher and oil is 0.25 cent to 0.35 cent higher as product action tries to rebalance a bit while keeping crush margins strong. Brazil looks to remain in good shape short term, while the Argentina improvement maybe fleeting with hotter and dry weather expected to return short term. The daily export wire was quiet Wednesday with less action so far this week. Basis remains mostly sideways near term. January chart support is at the $14.51 20-day with resistance at the $14.92 upper Bollinger Band and then the $14.93 3/4 two-month high, scored this Friday. WHEAT: Wheat trade is 4 to 17 cents lower at midday with trade fading off the early week rebound with little change to the political and short-term weather forecasts into midweek, with Chicago action leading as spread action favors it over KC and Minneapolis. The Southern 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 have faded further today as they sit at recent lows as the premium to U.S. origin narrows. On the chart, KC March has support at the lower Bollinger Band at $8.14 and the fresh low at $8.27 scored last week still above those levels. Resistance is at the $8.84 20-day. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.