DTN Midday Grain Comments 01/13 10:56

DTN Midday Grain Comments 01/13 10:56 Corn, Soybeans, Higher at Midday; Wheat Mixed Corn futures are 1 to 2 cents higher at midday Friday; soybean futures are 5 to 7 cents higher; wheat futures are 4 cents lower to 4 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents higher at midday Friday; soybean futures are 5 to 7 cents higher; wheat futures are 4 cents lower to 4 cents higher. The U.S. stock market is mixed with the DOW up 30 points. The U.S. Dollar Index is 5 points higher. Interest rate products are mixed. Energies are firmer with crude up 1.10 and natural gas is .10 lower. Livestock trade is mostly lower. Precious metals are mixed with gold up 16.00. CORN: Corn futures are 1 to 2 cents higher at midday with trade working to consolidate the post-report gains after pushing through nearby resistance Thursday. On the report, stocks came in lower than expected at 10.809 billion bushels (bb) versus 11.153 bb expected, with carryout at 1.242 bb versus 1.310 bb expected as harvested acres fell by 1.6 million, offsetting the yield rise to 173.3 bushels per acre (bpa) for the final harvest number. Ethanol margins will need demand to improve to support production near term with blender margins showing a little improvement on recent unleaded strength. 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, support is at the $6.62 20-day moving average which we moved through Thursday with the upper Bollinger Band at $6.84 the next round up. SOYBEANS: Soybean futures are 5 to 7 cents higher at midday with firmer spread action amid two-sided movement as trade works to consolidate recent gains. Meal is $3.00 to $4.00 lower and oil is flat to 10 points lower as crush margins ease slightly. On the report, stocks were lower than expected at 3.022 bb versus 3.132 bb expected and carryout was at 210 mb versus 242 mb expected as yield fell by .7 bpa for the final harvested number to 49.5 bpa. Basis remains mostly sideways near term. March chart support is at the $14.91 20-day moving average continues to hold, with the lower Bollinger Band at $14.59 as the next level down, with the Upper Bollinger Band at $15.25 which we are testing at midday. WHEAT: Wheat futures are 4 cents lower to 4 cents higher at midday with mixed action as KC wheat continues to gain versus the other categories and we consolidate away from the early week lows. On the report, acres were bigger than expected at 37.0 million, and the highest since 2013, while stocks were lower than expected at 1.28 bb versus 1.344 bb, with carryout at 567 mb versus 582 mb expected. The Southern Plains should show improvement over the next couple of weeks, while Europe and the Black Sea see mixed weather. Matif wheat values are flat to weaker. 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 $8.10, which we bounced from earlier in the week. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.