DTN Midday Grain Comments 01/10 10:55

DTN Midday Grain Comments 01/10 10:55 Corn, Soybean Futures are Higher at Midday; Wheat Lower Corn futures are 5 to 6 cents higher at midday Tuesday; soybean futures are 6 to 7 cents higher; wheat futures are 2 to 10 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 6 cents higher at midday Tuesday; soybean futures are 6 to 7 cents higher; wheat futures are 2 to 10 cents lower. The U.S. stock market is flat with the DOW up 25 points. The U.S. Dollar Index is 25 points higher. Interest rate products are weaker. Energies are mixed with crude up .30 and natural gas is .35 lower. Livestock trade is mixed. Precious metals are mixed with gold up 3.10. CORN: Corn futures are 5 to 6 cents higher at midday with firmer action as the day session got rolling with stronger spread action boosting trade back toward resistance. Ethanol margins will need demand to improve to support production near-term with stocks still ample for this time of year, while natural-gas hanging at the low end of the range adds some support. 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. Basis has stabilized in the west with above-average action holding up overall. On the March chart, resistance is at the $6.60 20-day moving average, which we are just below at midday with the Lower Bollinger Band at $6.38 the next level of support below that. SOYBEANS: Soybean futures are 6 to 7 cents higher at midday with trade bouncing back above first support levels again with little near-term change to South American weather, and improved commodity strength at midday. Meal is $2.00 to $3.00 higher and oil is 5 to 15 points higher as crush margins hold their ground. The daily export wire will need to remain active as the window for U.S. exports winds down with Mexico securing 174,181 metric tons (mt) on the daily wire. Basis remains mostly sideways near-term. March chart support is at the $14.87 20-day moving average, which we tested before bouncing, with the lower Bollinger Band at $14.56 as the next level down. WHEAT: Wheat futures are 2 to 10 cents lower as we firm back from scoring fresh lows for the move this morning, along with spillover pressure from Europe easing a little. 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 are areas of above normal, and well-below-normal temps. Matif wheat values are weaker with the U.S. on the back burner of 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 $8.56, which we fell through last week, with the fresh low at $8.03 this morning as support with the lower Bollinger band at $8.18, where we are trading at midday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.