DTN Midday Grain Comments 12/29 10:48

DTN Midday Grain Comments 12/29 10:48 Corn, Wheat Futures Lower at Midday; Soybeans Narrowly Mixed Corn futures are 4 to 5 cents lower at midday Thursday; soybean futures are narrowly mixed; wheat futures are 15 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 5 cents lower at midday Thursday; soybean futures are narrowly mixed; wheat futures are 15 to 18 cents lower. The U.S. stock market is firmer with the DOW up 320 points. The U.S. Dollar Index is 40 points lower. Interest rate products are mostly higher. Energies are weaker with crude off 1.05 and natural gas is .30 lower. Livestock trade is mostly higher. Precious metals are mixed with gold up 4.50. CORN: Corn futures are 4 to 5 cents lower at midday with trade fading back from the fresh highs of Wednesday with volume thinning and little fresh news to push buying. Ethanol margins will need post-holiday demand to be robust to keep stocks manageable while natural gas stays near the recent lows to keep some support in play with the weekly report showing production off by 66,000 barrels per day (bpd), and stocks up by 569,000 barrels. Crop development will continue to be watched in Argentina as pace and conditions lag last year. The daily export wire was quiet today after the action seen to start the week and the weekly report delayed until Friday. Basis has stabilized in the west with above-average action holding up overall. On the March chart, support is at the $6.54 20-day moving average, which we moved above Wednesday, with the Upper Bollinger Band at $6.78 the next level up as resistance which we are just above at midday, and then the fresh high at $6.83 1/2. SOYBEANS: Soybean futures are narrowly mixed with trade continuing to consolidate in the upper end of the range. Markets are looking at China demand along with South American crop development as trade gets more overbought with the morning moving coming in just short of the fresh high. Meal is flat to $1.00 lower and oil is 105 to 115 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 recent rains. The daily export wire has been quiet to start the week but we are anticipating fresh bookings with the action to start next week. Basis remains mostly sideways near term. January chart support is at the $14.72 20-day moving average with resistance at the $15.11 upper Bollinger band and the $15.16 3/4 high scored Tuesday. WHEAT: Wheat futures are 15 to 18 cents lower at midday with trade fading back from the recent highs in thin volume with warmer short-term weather and little fresh news on the world front to push trade after testing the higher end of the range earlier in the week. Spread action has been a little weaker after Tuesday's strength. The Southern Plains look to remain mostly dry short term with warmer action into January with moisture and better cover likely to the north. Southern Hemisphere harvest will wind down soon. Matif wheat values are solidly lower Thursday morning as well. On the chart, KC March has support at the 20-day moving average at $8.58 that we pushed above last week, with the Upper Bollinger Band above that at $8.91. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.