DTN Midday Grain Comments 01/25 10:59

DTN Midday Grain Comments 01/25 10:59 Corn Down, Beans and Wheat Up Midday Wednesday Corn trade is flat to 1 cent lower, beans are 2 to 3 cents higher and wheat trade is 6 to 10 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is flat to 1 cent lower, beans are 2 to 3 cents higher and wheat trade is 6 to 10 cents higher. The U.S. stock market is weaker with the Dow off 300 points. The U.S. Dollar Index is 0.03 lower. Interest rate products are mixed. Energies are mixed with crude up $0.40 and natural gas off $0.10. Livestock trade is mixed. Precious metals are mixed with gold off $0.50. CORN: Corn trade is flat to 1 cent lower with trade seeing light two-sided action and flat to softer spread action after the strong close Wednesday, fading back from the upper end of the range. Ethanol margins will need blender margins to stay solid to hold demand and production at recent levels with the weekly report showing production 4,000 barrels per day higher, while stocks surged by 1.675 million barrels. Crop development will continue to be watched as Argentina should show short-term improvement. The daily export wire showed some life with 100,000 metric tons sold to unknown Wednesday. 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 above at midday with the upper Bollinger Band at $6.92 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 is 2 to 3 cents higher in two-sided action with continued progress in South America keeping pressure on as trade waits to see how demand holds up short term with the recent product weakness. Meal is flat to $1.00 higher and oil 0.45 cent to 0.65 cent lower with spreads flat. The daily export wire showed 130,000 metric tons to unknown Wednesday with a better sales pace still needed for excitement. South American weather looks better for the most part short term with harvest to keep moving forward in Brazil. Basis remains mostly sideways near term. March chart resistance is at the $15.02 20-day which we have faded from, with the lower Bollinger Band at $14.65 the next level of support. WHEAT: Wheat trade is 6 to 10 cents higher at midday with KC trade leading again as trade presses back towards resistance levels after recovering from the washout Monday with oversold conditions easing, and trade watching to see if strength holds for a full session after the recent volatility with action about 8 cents off the highs. 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 U.S. values limiting export potential short term but are firmer Wednesday morning. On the chart, KC March has resistance at the 20-day moving average at $8.46, which we are just below at midday, 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 dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.