DTN Midday Grain Comments 01/23 10:45

DTN Midday Grain Comments 01/23 10:45 Corn, Beans and Wheat Lower Midday Monday Corn trade is 10 to 11 cents lower; beans are 22 to 24 cents lower, and wheat trade is 18 to 29 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 10 to 11 cents lower; beans are 22 to 24 cents lower, and wheat trade is 18 to 29 cents lower. The U.S. stock market is firmer with the DOW up 315 points. The Dollar Index is flat. Interest rate products are weaker. Energies are firmer with crude up 0.60 and natural gas up 0.02. Livestock trade is mixed. Precious metals are weaker with gold down 3.50. CORN: Corn trade is 10 to 11 cents lower at midday with broad ag selling to start with relief rains in Argentina, and little other fresh bullish news as we fade back to the middle of the recent range. Ethanol margins will need blender margins 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 remained quiet, with inspections in line with recent weeks at 727,643 metric tons. Basis has stabilized in the west with above average action holding up overall. On the March chart, support is at the $6.66 20-day moving average which we are testing at midday with the upper Bollinger Band at $6.90 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 22 to 24 cents lower at midday with a gap lower to start the week with the improvement in Argentina rains with early harvest progressing in Brazil. Meal is 5.00 to 6.00 lower and oil is 15 to 25 points lower. The daily export wire will need to remain active with buyers on the pull back with 192,000 metric tons sold to unknown, while weekly export inspections faded a little at 1.806 million metric tons. South American weather looks better for the most part short term. Basis remains mostly sideways near term. March chart support is at the $15.01 20-day which we pulled back below overnight, with the Lower Bollinger Band at $14.63 the next level of support. WHEAT: Wheat trade is 18 to 29 cents lower at midday with trade giving back the late Friday gains on row crop weakness to continue range bound action overall, albeit back at the low end. 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 the ongoing political questions. Matif wheat values continue to struggle with U.S. values limiting export potential short term. Weekly export inspections remained in line with recent weeks at 334,217 metric tons. On the chart, KC March has resistance at the 20-day moving average at $8.50 which we faded from midweek, with the recent low at $8.03 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.