DTN Midday Grain Comments 01/20 10:44

DTN Midday Grain Comments 01/20 10:44 Corn, Beans Down; Wheat Up Midday Friday Corn trade is flat to 1 cent lower, beans are 1 to 4 cents lower and wheat trade is 4 to 12 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is flat to 1 cent lower, beans are 1 to 4 cents lower and wheat trade is 4 to 12 cents higher. The U.S. stock market is firmer with the Dow up 190 points. The U.S. Dollar Index is 0.15 higher. Interest rate products are weaker. Energies are flat for crude and natural gas with crude up $0.30 and natural gas up $0.09. Livestock trade is firmer. Precious metals are firmer with gold up $2.50. CORN: Corn trade is 1 to 2 cents lower with trade fading further from the upper end of the range and 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 short term. Crop development will continue to be watched in Argentina as pace and conditions lag last year with better short-term development as rains spread in the drier areas over the next few days. The daily export wire was quiet Friday and weekly sales were much improved at 1.132 million old and 87,000 of new. Basis has stabilized in the west with above average action holding up overall. On the March chart, support is at the $6.68 20-day moving average, which we moved above last week with the upper Bollinger Band at $6.90 the next round up, which we have faded from midweek with a fresh high for the move being scored at $6.88 3/4. SOYBEANS: Soybeans are 1 to 4 cents lower with spread action remaining firm as better rains for Argentina near term likely limit upside with demand ideas giving trade short-term support. Meal is $3.50 to $4.50 lower and oil 0.70 cent to 0.80 cent lower, narrowing crush margins a little bit. The daily export wire showed 220,000 metric tons sold to unknown with weekly sales improved at 986,200 metric tons old crop beans, 362,500 of meal, and 700 of oil. South American weather looks for some relief in the drier areas short term with Argentina concerns likely to ease further while early harvest started in Brazil. Basis remains mostly sideways near term. March chart support is at the $15.01 20-day continues to hold, with the upper Bollinger Band at $15.41, which we have pulled back from midweek with the new high at $15.48 1/2. WHEAT: Wheat trade is 4 to 12 cents higher at midday with good buying and spread strength so far during the day session with some export strength and value buying at the low end of the week range. The Southern Plains should show improvement over the next couple of weeks with no extreme cold expected, while Europe and the Black Sea see mixed weather as we move deeper into winter along with some talk of Russia slowing export pace. Matif wheat values continue to struggle with U.S. values limiting export potential short term. Weekly export sales were improved at 473,100 old, and 35,000 new. On the chart, KC March has resistance at the 20-day moving average at $8.50 which we faded from midweek, with the fresh low at $8.03 from a week ago as support with the lower Bollinger Band at $8.07. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.