DTN Midday Grain Comments 01/11 10:51

DTN Midday Grain Comments 01/11 10:51 Corn, Soybean and Wheat Futures are Higher at Midday Corn trade is 2 to 3 cents higher; beans are 7 to 9 cents higher, and wheat trade is 3 to 7 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 2 to 3 cents higher; beans are 7 to 9 cents higher, and wheat trade is 3 to 7 cents higher. The U.S. stock market is firmer with the DOW up 95 points. The Dollar Index is 5 points higher. Interest rate products are firmer. Energies are mixed with crude up 1.50 and natural gas is 0.15 lower. Livestock trade is lower. Precious metals are mixed with gold off 3.80. CORN: Corn trade is 2 to 3 cents higher at midday with light buying and firmer spread action continuing as we head towards the report on Thursday with little other fresh news. For the report, trade is looking for a carryout of 1.314 billion bushels (bb) with stocks at 11.513 bb. Ethanol margins will need demand to improve to support production near term with the weekly report showing production up by 99,000 barrels per day, and stocks down by 644,000 barrels. 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. The daily export wire will need to show more life to get trade excited with a slow start again to this week. 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 remain a couple cents below with the Lower Bollinger Band at $6.39 the next level of support below that. SOYBEANS: Soybean trade is 7 to 9 cents higher at midday with trade pressing back towards the $15.00 area in light buying with support from product action and continued weather uncertainty. Meal is 3.50 to 4.50 higher and oil is 10 to 20 points higher as crush margins hold their ground. For the report, trade is looking for a carryout of 236 million bushels (mb) with stocks at 3.132 bb. The daily export wire will need to remain active as the window for U.S. exports winds down with 124,000 metric tons (mt) of soybeans sold to unknown on the daily wire. Basis remains mostly sideways near term. March chart support is at the $14.88 20-day which we are just above at midday, with the lower Bollinger Band at 14.59 as the next level down, while $15.00 holds as nearby resistance. WHEAT: Wheat trade is 3 to 7 cents higher with two-sided action early and light pre-report short covering staring to develop at midday amid oversold conditions and little fresh news. For the report, acres are expected to be at 34.485 million acres with carryout at 580 mb and stocks at 1.344 bb. The Southern Plains look to remain mostly dry short term with warmer action into January. Moisture is concentrated east this week with improvement the second week, while Europe and the Black Sea see mixed weather. Matif wheat values are flat with the U.S. on the back burner on the world export market. On the chart, KC March has resistance at the 20-day moving average at $8.53 which we fell through last week, with the fresh low at $8.03 from yesterday as support with the lower Bollinger band at $8.11 which we have bounced from Wednesday morning. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.