DTN Midday Grain Comments 01/04 10:56

DTN Midday Grain Comments 01/04 10:56 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 13 to 14 cents lower at midday Wednesday; soybean futures are 3 to 4 cents lower; wheat futures are 14 to 26 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 13 to 14 cents lower at midday Wednesday; soybean futures are 3 to 4 cents lower; wheat futures are 14 to 26 cents lower. The U.S. stock market is firmer with the DOW up 170 points. The U.S. Dollar Index is 30 points lower. Interest rate products are firmer. Energies are weaker with crude down 3.60 and natural gas is .10 higher. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold up 17.10. CORN: Corn futures are 13 to 14 cents lower at midday with soft spread action as demand worries keep the market on its back foot. 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 delayed until Thursday. Crop development will continue to be watched in Argentina as pace and conditions lag last year with a warm start to the week after some rains. The daily export wire will need to show more life to get trade excited with nothing to start the week. Basis has stabilized in the west with above-average action holding up overall. On the March chart, support is at the $6.58 20-day moving average, which we are testing at midday with the Upper Bollinger Band at $6.85 the next level up as resistance then the fresh high at $6.86 just above that. SOYBEANS: Soybean futures are 3 to 4 cents lower with trade fading back from a test of $15.00 nearby after the break lower to start the week as product action remains mixed and we watch for further clues on South American development. Meal is $3.00 to $4.00 lower and oil is flat to 10 points higher after early strength. 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, along with short-term stress possible this week. The daily export wire will need to remain active as the window for U.S. exports winds down; 124,000 metric tons (mt) of soybeans were sold to unknown today. Basis remains mostly sideways near term. March chart support is at the $14.86 20-day moving average with resistance at the $15.19 upper Bollinger band and the $15.37 1/2 fresh high scored last week. WHEAT: Wheat futures are 14 to 26 cents lower at midday with thin volatile trade continuing while better U.S. weather is expected short term, and trade waits for further Black Sea developments with some talk of grain corridor slowdowns but not enough to encourage buying so far. Spread action is soft to start. The Southern Plains look to remain mostly dry short term with warmer action into January with moisture and better cover to the north short term with the second week better for most. Southern Hemisphere harvest will wind down soon. Matif wheat values are soft to start in light action. On the chart, KC March has resistance at the 20-day moving average at $8.58, which we fell through Wednesday morning, with the Lower Bollinger Band below that at $8.26. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.