DTN Midday Grain Comments 01/18 10:47

DTN Midday Grain Comments 01/18 10:47 Corn, Soybeans & Wheat All Lower at Midday Corn trade is 1 to 2 cents lower; beans are 11 to 12 cents lower, and wheat trade is 2 to 5 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 1 to 2 cents lower; beans are 11 to 12 cents lower, and wheat trade is 2 to 5 cents lower. The U.S. stock market is weaker with the DOW down 320 points. The Dollar Index is 35 points lower. Interest rate products are firmer. Energies are mixed with crude 1.80 higher, and natural gas down 0.20. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold up 3.40. CORN: Corn trade is 1 to 2 cents lower at midday with early gains and a test of resistance fading during the day session with flat to weaker spread action. Ethanol margins will need demand to improve to support production near term with blender margins showing a little improvement on recent unleaded strength with the weekly report delayed until Thursday. Crop development will continue to be watched in Argentina as pace and conditions lag last year with better short-term development expected. The daily export wire was quiet today. Basis has stabilized in the west with above average action holding up overall. On the March chart, support is at the $6.65 20-day moving average which we moved above last week with the upper Bollinger Band at $6.89 the next round up, which we have faded from overnight with a fresh high for the move being scored at $6.88 3/4. SOYBEANS: Soybeans are 11 to 12 cents lower at midday with trade fading from fresh highs during the day session with focus remaining on demand and South American forecasts with expected improvements limiting upside. Meal is 5.00 to 6.00 lower and oil 35 to 45 points higher keeping crush margins stable. The daily export wire was quiet today. South American weather looks for some relief in the drier areas short term with Argentina concerns likely to ease a bit. Basis remains mostly sideways near term. March chart support is at the $14.98 20-day continues to hold, with the Upper Bollinger Band at $15.41 which we have pulled back from overnight with the new high at $15.48 1/2. WHEAT: Wheat trade is 2 to 5 cents lower with KC action continuing to lead as we faded back from the fresh highs overnight with trade working to hold nearby support. The Southern Plains should show improvement over the next couple of weeks, while Europe and the Black Sea see mixed weather as we move deeper into winter along with Russia potentially slowing export pace. Matif wheat values are struggling to follow U.S. values limiting export potential further. On the chart, KC March has resistance at the 20-day moving average at $8.52 which we edged back below at midday, with the fresh low at $8.03 from a week ago as support with the lower Bollinger band at $8.11. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.