DTN Midday Grain Comments 01/03 10:56

DTN Midday Grain Comments 01/03 10:56 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 6 to 7 cents lower at midday Tuesday; soybean futures are 23 to 25 cents lower; wheat futures are 11 to 15 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 6 to 7 cents lower at midday Tuesday; soybean futures are 23 to 25 cents lower; wheat futures are 11 to 15 cents lower. The U.S. stock market is weaker with the DOW off 170 points. The U.S. Dollar Index is 115 points higher. Interest rate products are firmer. Energies are weaker with crude down 2.20 and natural gas is .45 lower. Livestock trade is weaker. Precious metals are mixed with gold up 9.10. CORN: Corn futures are 6 to 7 cents lower at midday with pressure from the stronger dollar and weaker energies, while South American weather remains mixed with major threats limited and little fresh demand news. Ethanol margins will need post-holiday demand to be robust to keep stocks manageable, while natural gas stays near recent lows to keep some support in play. Crop development will continue to be watched in Argentina as pace and conditions lag last year with a warm start to the week after some rains. The daily export wire will need to show more life to get trade excited with nothing to start this week. Weekly inspections remain soft at 667,010 metric tons (mt). Basis has stabilized in the west with above-average action holding up overall. On the March chart, support is at the $6.57 20-day moving average, with the Upper Bollinger Band at $6.84 the next level up as resistance, then the fresh high at $6.85 just above that. SOYBEANS: Soybean futures are 23 to 25 cents lower at midday with broad pressure from overall commodity weakness and short-term weather threats remaining limited, along with a lack of fresh demand news. Meal is $7.50 to $8.50 lower and oil is flat to 10 points lower after early strength. Brazil looks to remain in good shape short term, while the Argentina improvement will need to continue with the forecast in flux as we get deeper into the growing season along with short-term stress possible this week. The daily export wire will need to remain active as the window for U.S. exports winds down with nothing today. Weekly export inspections were lackluster at 1.463 million metric tons (mmt). Basis remains mostly sideways near term. March chart support is at the $14.84 20-day moving average with resistance at the $15.23 upper Bollinger band and the $15.37 1/2 fresh high scored last week. WHEAT: Wheat futures are 11 to 15 cents lower with thin, volatile trade continuing. Better U.S. weather is expected short term and trade waits for further Black Sea developments. Spread action has firmed lately as well, with flat action Tuesday morning. The Southern Plains look to remain mostly dry short term with warmer action into January with moisture and better cover likely to the north short term with the second week better for most. Southern Hemisphere harvest will wind down soon. Matif wheat values are soft to start in light action. Wheat exports inspections were disappointing at 85,672 metric tons (mt). On the chart, KC March has support at the 20-day moving average at $8.58, with the Upper Bollinger Band above that at $8.90, which we tested this morning. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.