DTN Midday Grain Comments 01/24 10:54

DTN Midday Grain Comments 01/24 10:54 Corn, Wheat Higher at Midday Tuesday; Wheat Steady to Lower Corn trade is 4 to 5 cents higher; beans are flat to 2 cents lower, and wheat trade is 11 to 15 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 4 to 5 cents higher; beans are flat to 2 cents lower, and wheat trade is 11 to 15 cents higher. The U.S. stock market is flat with the Dow unchanged. The Dollar Index is 20 points lower. Interest rate products are firmer. Energies are weaker with crude down 1.20 and natural gas down 0.10. Livestock trade is weaker. Precious metals are mixed with gold up 8.50. CORN: Corn trade is 4 to 5 cents higher at midday with lightly firmer spread action as trade works to rebound from the rough start to the week with little fresh news to move us out of the recent range and trade fading back from the highs. Ethanol margins will need blender margins to stay solid to hold demand and production at recent levels. Crop development will continue to be watched as Argentina should show short term improvement. The daily export wire showed some life with 130,000 metric tons sold to unknown. Basis has stabilized in the west with above average action holding up overall. On the March chart, support is at the $6.69 20-day moving average which we are just above at midday with the upper Bollinger Band at $6.91 the next round up, which we have faded from last week with a fresh high for the move being scored at $6.88 3/4. SOYBEANS: Soybeans are flat to 2 cents lower at midday with early gains eroding as product values fade and we continue to assess South American progress. Meal is 1.00 to 2.00 lower and oil is 90 to 100 points lower with spreads easing. The daily export wire was quiet today with a better sales pace still needed for excitement. South American weather looks better for the most part short term. Basis remains mostly sideways near term. March chart resistance is at the $15.03 20-day which we are just below overnight, with the Lower Bollinger Band at $14.65 the next level of support. WHEAT: Wheat trade is 11 to 15 cents higher at midday with KC trade leading with volatile trade likely to continue in the lower end of the range with spillover direction from row crops and world developments short term. The Southern Plains should show improvement over the next couple of weeks with no extreme cold expected and better snow cover, while Europe and the Black Sea see mixed weather as we move deeper into winter, along with the ongoing political questions. Matif wheat values continue to struggle with US values limiting export potential short term but are firmer this A.M. On the chart, KC March has resistance at the 20-day moving average at $8.47 which we faded from midweek, with the recent low at $8.03 as support with the lower Bollinger band also at $8.03 which we held on Monday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.