DTN Midday Grain Comments 01/05 10:52

DTN Midday Grain Comments 01/05 10:52 Corn, Wheat Futures Mixed at Midday; Soybeans Lower Corn futures are narrowly mixed at midday Thursday; soybean futures are 5 to 6 cents lower; wheat futures are mixed. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are narrowly mixed at midday Thursday; soybean futures are 5 to 6 cents lower; wheat futures are mixed. The U.S. stock market is weaker with the DOW off 430 points. The U.S. Dollar Index is 90 points higher. Interest rate products are mixed. Energies are mixed with crude up 1.20 and natural gas is .40 lower. Livestock trade is weaker. Precious metals are mixed with gold down 24.10. CORN: Corn futures are narrowly mixed with trade trying to turn higher at midday after early weakness following the slow start to 2023 with outside market influence improving. 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. The weekly report showed production off sharply by 119,000 barrels, while stocks declined by 346,000 barrels. 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. The weekly sales report is delayed until Friday with 600,000 metric tons (mt) to 750,000 mt expected. Basis has stabilized in the west with above-average action holding up overall. On the March chart, resistance is at the $6.58 20-day moving average which we faded through Wednesday with the Lower Bollinger Band at $6.34 the next level up of support below that. SOYBEANS: Soybean futures are 5 to 6 cents lower in quiet midday action as soybeans faded back again from early overnight strength as we wait for further weather developments as well as watching short-term demand signs. Meal is $3.50 to $4.50 higher and oil is 40 to 50 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 along with short-term stress possible the next few days. The daily export wire will need to remain active as the window for U.S. exports winds down with nothing Thursday. Weekly export sales, report delayed to Friday, are expected to be in the 600,000 mt to 800,000 mt range with meal strength likely. Basis remains mostly sideways near term. March chart resistance is at the $14.86 20-day moving average, which we closed below Wednesday, with the lower Bollinger Band at $14.56 as the next level down. WHEAT: Wheat futures are narrowly mixed at midday with trade fading off the overnight highs but firming back from early day-session lows with better spillover with improved weather still expected in North America, while little change is seen in Black Sea conditions short term. 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. Matif wheat values are working to turn higher in light action with the U.S. on the back burner on the world export market. Weekly export sales are expected to be in the 150,000 mt to 350,000 mt range when released Friday. On the chart, KC March has resistance at the 20-day moving average at $8.58, which we fell through Wednesday, 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.