DTN Midday Grain Comments 01/12 10:49

DTN Midday Grain Comments 01/12 10:49 Corn Futures Lower at Midday; Soybeans Higher; Wheat Mixed Corn futures are 3 to 4 cents lower at midday Thursday; soybean futures are 5 to 6 cents higher; wheat futures are 12 cents lower to 1 cent higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents lower at midday Thursday; soybean futures are 5 to 6 cents higher; wheat futures are 12 cents lower to 1 cent higher. The U.S. stock market is mixed with the DOW up 135 points. The U.S. Dollar Index is 60 points lower. Interest rate products are firmer. Energies are firmer with crude up 1.30 and natural gas is .25 higher. Livestock trade is weaker. Precious metals are firmer with gold up 16.80. CORN: Corn futures are 3 to 4 cents lower at midday with light selling picking up pre-report with limited position-squaring so far as well as digesting the inflation report coming in line with expectations. On 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 blender margins showing a little improvement. 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 sales were disappointing at 255,700 metric tons (mt) of old crop and 22,400 mt of new crop. 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 futures are 5 to 6 cents lower at midday with action trying to push past $15.00 upfront while spread action remains firmer. Meal is .50 to 1.50 higher and oil is 50 to 60 points higher as crush margins hold their ground. On the report, trade is looking for a carryout of 236 million bushels (mb) with stocks at 3.132 bb. Weekly export sales were mediocre at 717,400 mt of old-crop, 66,000 of new-crop, with meal very poor at 3,300 and 600 of oil. Basis remains mostly sideways, near-term. March chart support is at the $14.88 20-day moving average and continues to hold, with the lower Bollinger Band at $14.59 as the next level down, with a close above $15.00 the next step higher. WHEAT: Wheat futures are 12 cents lower to 1 cent higher ahead of the report with spring wheat leading and Chicago lagging as we stay at the lower end of the range. On the report, acres are expected to be at 34.485 million 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 with moisture concentrated east this week with improvement the second week, while Europe and the Black Sea see mixed weather. Matif wheat values were flat with the U.S. on the back burner on the world export market. Weekly export sales remain soft at 90,800 mt of old crop and 1,500 mt of new. On the chart, KC March has resistance at the 20-day moving average at $8.52, which we fell through last week, with the fresh low at $8.03 from Tuesday as support with the lower Bollinger band at $8.08, which we have held above this morning. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.