DTN Midday Grain Comments 12/30 10:52

DTN Midday Grain Comments 12/30 10:52 Soybean, Wheat Futures Higher at Midday; Corn Mixed Corn futures are narrowly mixed at midday Friday; soybean futures are 5 to 6 cents higher; wheat futures are 14 to 20 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are narrowly mixed at midday Friday; soybean futures are 5 to 6 cents higher; wheat futures are 14 to 20 cents higher. The U.S. stock market is weaker with the DOW off 250 points. The U.S. Dollar Index is 15 points lower. Interest rate products are weaker. Energies are mixed with crude up .40 and natural gas is .15 lower. Livestock trade is mostly lower. Precious metals are weaker with gold off 3.10. CORN: Corn futures are narrowly mixed with corn struggling to follow soybeans as we continue to chop along the upper end of the range with trade fading from a fresh high for the move. 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. Crop development will continue to be watched in Argentina as pace and conditions lag last year. The daily export wire was quiet Friday after the action seen to start the week. The weekly report showed sales of 781,600 metric tons (mt), in line with recent weeks. Basis has stabilized in the west with above-average action holding up overall. On the March chart, support is at the $6.56 20-day moving average, with the Upper Bollinger Band at $6.83, the next level up as resistance, then the fresh high at $6.85 just above that. SOYBEANS: Soybean futures are 5 to 6 cents higher at midday, pressing into new highs this morning before fading as trade gets more overbought with Argentina weather concerns and forward China demand still at the front of the market's mind. Meal is $10.50 to $11.50 higher, and oil is 220 to 230 points lower. Brazil looks to remain in good shape short term, while the Argentina improvement will need to continue with the forecast in flux as we get deeper into the growing season. The daily export wire saw 186,000 mt sold to unknown. Weekly sales were mediocre at 705,800 mt of old crop, meal at 264,300 and oil at 5,400 all for old crop. Basis remains mostly sideways near term. March chart support is at the $14.82 20-day moving average with resistance at the $15.23 upper Bollinger band and the $15.37 1/2 fresh high scored Friday morning. WHEAT: Wheat futures are 15 to 20 cents higher with trade erasing Thursday's pullback to move back into nearby resistance as seasonal strength continues to close the month. Spread action has firmed this morning as well. The Southern Plains look to remain mostly dry short term with warmer action into January with moisture and better cover likely to the north short term. Southern Hemisphere harvest will wind down soon. Matif wheat values are firmer as well. Wheat exports showed some life at 478,100 mt. On the chart, KC March has support at the 20-day moving average at $8.57 that we pushed above last week, with the Upper Bollinger Band above that at $8.86, which we are testing at midday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.