DTN Midday Grain Comments 12/05 10:46

DTN Midday Grain Comments 12/05 10:46 Corn and Wheat Futures Higher, Beans Lower Midday Tuesday Corn trade is 1 to 2 cents higher; beans are 4 to 6 cents lower and wheat trade is 1 to 5 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the S&P 4 points lower. The dollar index is 20 points higher. Interest rate products are firmer. Energies are flat to firmer with crude up $0.50 and natural gas up $0.06. Livestock trade is mixed. Precious metals are lower with gold off $8. CORN: Corn trade is 1 to 2 cents higher at midday Tuesday in quiet action as we continue to hang right around nearby resistance levels with little other fresh news with action pulling back from the highs midmorning. Ethanol margins are narrowing a bit with corn bouncing and unleaded remaining near the low end of the range in recent days compressing blender margins. Basis should remain steady short term. The daily wire was quiet today after the Monday sales. South American weather should see little change in the immediate term with the extended forecast looking wetter. On the March chart, the 20-day at $4.85 is nearby resistance which is we are just above overnight with the fresh low at 4.70 1/2 as support. SOYBEANS: Soybean trade is 4 to 6 cents lower at midday with early product strength fading and weather premium still slipping out of the market. Meal is flat to $1 higher and oil is 90 to 100 points lower. The daily wire was quiet today. Basis continues to drift sideways short term. The South American weather pattern will be watched for confirmation of the expected uptick in rain at the end of the two-week forecast. The January soybean chart has resistance at the 20-day at $13.51, with the $13 level as support which we are testing at midday. WHEAT: Wheat trade is 1 to 5 cents higher with Chicago action continuing to lead with firmer spread action as China secured another 198,000 metric tons of soft red wheat on the daily wire continuing the recent buying binge. The Plains should see mostly seasonal to slightly warmer temps short term. World weather has shown little change in recent days with little concern in the Northern Hemisphere for now. Matif wheat is narrowly mixed with the dollar back near the recent highs. On the KC March Chart, support is at the 20-day moving average at $6.38 with the Upper Bollinger Band at $6.72 as resistance as we try to consolidate the recent rebound. ** Register now for DTN's Virtual Ag Summit on Dec. 5 and 6, a virtual event that offers discussions of farmland values, tax advice, the latest technological advances, and the challenges of having a family business. On Wednesday, Ag Meteorologist John Baranick will give an early glimpse of what to expect from the weather in 2024 and Todd Hultman will give you his best assessment of where corn and soybean prices are headed in the year ahead. Register for this free event at https://www.dtn.com/2023-ag-summit-series/. Can't make it those two days? A recorded link will be provided, but you need to register. ** David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2023 DTN, LLC. All rights reserved.