DTN Midday Grain Comments 12/27 11:02

DTN Midday Grain Comments 12/27 11:02 Corn, Soybean Futures Higher at Midday; Wheat Flat-Higher Corn futures are 5 to 6 cents higher at midday Tuesday; soybean futures are 6 to 8 cents higher; wheat futures are flat to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 6 cents higher at midday Tuesday; soybean futures are 6 to 8 cents higher; wheat futures are flat to 8 cents higher. The U.S. stock market is mixed with the DOW up 130 points. The U.S. Dollar Index is 20 points lower. Interest rate products are weaker. Energies are firmer with crude up 1.40 and natural gas are narrowly mixed. Livestock trade is mostly lower. Precious metals are firmer with gold up 25.00. CORN: Corn futures are 5 to 6 higher at midday with thin trade likely to continue through New Year's with broad ag support this morning as we back off the highs. Ethanol margins will need post-holiday demand to be robust to keep stocks manageable while natural gas stays near the recent lows. Planting should catch up further in Argentina with mixed weekend rains. The daily export wire showed a little life with 177,500 metric tons (mt) sold to Japan with all but 7,500 for new crop. Weekly export inspections remained rangebound at 856,606 mt. Basis has stabilized in the west with above-average action holding up overall. On the March chart, support is at the $6.53 20-day moving average, which we moved above Wednesday, with the Upper Bollinger Band at $6.73 the next level up as resistance. SOYBEANS: Soybean futures are 6 to 8 cents higher at midday with trade fading off the spike highs scored on the open with optimism about China demand as they reopen from COVID protocols with South American weather still mixed and products working to rebalance. Meal is $3.50 to $4.50 lower and oil is 175 to 195 points higher. Brazil looks to remain in good shape short term, while the Argentina improvement will need to continue with the forecast in flux and mixed weekend rains. The daily export wire was quiet to start the week, with weekly export inspections remaining rangebound at 1.753 million metric tons (mmt). Basis remains mostly sideways near term. January chart support is at the $14.66 20-day moving average, which we are just above with resistance at the $14.99 upper Bollinger band and the $15.16 3/4 high scored this morning. WHEAT: Wheat futures are flat to 8 cents higher at midday to start the week with support from euro values and evaluation of the impact of the cold snap on U.S. winter wheat. Spread action has firmed for the higher protein wheats as well. The Southern Plains look to remain mostly dry short term with warmer action into January. Southern Hemisphere harvest continues to move ahead with mixed results so far. Matif wheat values are firmer this morning as well. On the chart, KC March has support at the 20-day moving average at $8.60 that we pushed above at midweek, with the Upper Bollinger Band above that at $9.00. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.