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DTN Midday Grain Comments 12/20 10:44

20 Dec 2022
DTN Midday Grain Comments 12/20 10:44 Grain Futures Higher Midday Tuesday Corn trade is 2 to 3 cents higher; beans are 17 to 19 cents higher and wheat trade is 5 to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 2 to 3 cents higher; beans are 17 to 19 cents higher and wheat trade is 5 to 8 cents higher. The U.S. stock market is lower with the Dow down 10 points. The U.S. Dollar Index is 0.75 lower. Interest rate products are weaker. Energies are mixed with crude up $0.30 and natural gas down $0.45. Livestock trade is mixed. Precious metals are firmer with gold up $25.00. CORN: Corn trade is 2 to 3 cents higher at midday Tuesday with steady to slightly firmer spread action, as trade continues to work the lower end of the range in thinner trade. Ethanol margins have stabilized a bit with corn holding the lower end of the range and natural gas backing off the highs, with demand starting to edge higher ahead of the holidays. Planting should catch up in Argentina with the improved forecast. The daily export wire was quiet Tuesday. 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 the lower Bollinger Band just below that at $6.33. Resistance is at the $6.54 20-day moving average, which we continue to work just below. SOYBEANS: Soybean trade is 17 to 19 cents higher at midday with trade working the upper end of the range with crush margins keeping support in place while we wait for further South American weather development. Meal is $3.50 to $4.50 higher and oil is 1.25 cents to 1.45 cents higher. Brazil looks to remain in good shape short term, while the Argentina improvement will need to continue with the forecast in flux. The daily export wire has been fairly quiet in recent days with nothing showing up Tuesday. Basis remains mostly sideways near term. January chart support is at the $14.60 20-day, which we closed just above with resistance at the $14.97 upper Bollinger Band and the $14.93 3/4 two-month high. WHEAT: Wheat trade is 5 to 8 cents higher at midday with higher protein wheat leading in continued choppy trade at the lower end of the range with bouts of two-sided action as sustained buying interest remains limited. The Southern Plains look to remain mostly dry short term with some cover ahead of the cold snap with warmer weather to follow. Southern Hemisphere harvest continues to move ahead with mixed results so far. Matif wheat values remain at the lower end of the recent range as well. On the chart, KC March has support at the lower Bollinger Band at $8.11 and the fresh low at $8.27 still above those levels. Resistance is at the $8.68 20-day. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.