DTN Midday Grain Comments 01/09 10:50

DTN Midday Grain Comments 01/09 10:50 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 1 to 2 cents higher at midday Monday; soybean futures are 4 to 5 cents higher; wheat futures are 8 to 13 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents higher at midday Monday; soybean futures are 4 to 5 cents higher; wheat futures are 8 to 13 cents higher. The U.S. stock market is firmer with the DOW up 270 points. The U.S. Dollar Index is 85 points lower. Interest rate products are firmer. Energies are firmer with crude up 1.60 and natural gas is .35 higher. Livestock trade is firmer. Precious metals are stronger with gold up 11.10. CORN: Corn futures are 1 to 2 cents higher at midday with two-sided action so far as we remain at the lower end of the range with position-squaring likely to pick up ahead of Thursday's report. Ethanol margins will need demand to improve to support production near-term with stocks still ample for this time of year. Crop development will continue to be watched in Argentina as pace and conditions lag last year with short-term hot-and-dry conditions persisting this week with some relief seen in the extended forecast. Weekly export inspections remained soft at 397,585 metric tons (mt). Basis has stabilized in the west with above-average action holding up overall. On the March chart, resistance is at the $6.59 20-day moving average, which we faded through last week with the Lower Bollinger Band at $6.37, the next level of support below that. SOYBEANS: Soybean futures are 4 to 5 cents higher at midday with trade working to build on the solid close to last week with short-term heat in Argentina persisting while Brazil remains in good shape weather-wise as we get deeper into the growing season. Meal is $2.00 to $3.00 lower and oil is 5 to 25 points higher as crush action looks to remain stable. Weekly export inspections remained rangebound at 1.438 million metric tons (mmt). Basis remains mostly sideways near term. March chart resistance is at the $14.87 20-day moving average, which we continue to hold above overnight, with the lower Bollinger Band at $14.56 as the next level down, while we remain just short of $15.00 nearby as further resistance. WHEAT: Wheat futures are 8 to 13 cents higher at midday with Chicago trade leading with two-sided action early, giving way to broader buying at midday with mixed Northern Hemisphere weather with areas of warm and cold and the weaker dollar adding support. The Southern Plains look to remain mostly dry short-term with warmer action into January with moisture concentrated east this week, while Europe and the Black Sea see areas of above normal, and well-below-normal temps. Matif wheat values are flat to weaker with the U.S. on the back burner on the world export market. Weekly export inspections improved slightly at 201,673 mt. On the chart, KC March has resistance at the 20-day moving average at $8.57, which we fell through last week, with the Lower Bollinger Band below that at $8.23. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.