DTN Midday Grain Comments 12/06 10:56

DTN Midday Grain Comments 12/06 10:56 Corn and Bean Futures Lower, Wheat Mixed Midday Wednesday Corn trade is 5 to 6 cents lower; beans are 4 to 6 cents lower and wheat trade is 2 cents lower to 7 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is flat with the S&P 2 points higher. The dollar index is 10 points higher. Interest rate products are mixed. Energies are sharply lower with crude down $2.80 and natural gas off $0.05. Livestock trade is mostly lower. Precious metals are lower with gold off $5.60. CORN: Corn trade is 5 to 6 cents lower with trade fading back to support levels with spread action remaining flat to slightly firmer after failing to extend early strength. Ethanol margins are narrowing with the recent corn and unleaded action with the weekly report showing production 65,000 barrels per day higher, and stocks rising by 60,000 barrels. Basis should remain steady short term. The daily wire was quiet today. 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 support as we try to consolidate above it with the Upper Bollinger Band at $4.97 the next round up. SOYBEANS: Soybean trade is 4 to 6 cents lower with trade giving back early gains again to stay mired in the lower end of the recent range with product action continuing to slide as well. Meal is 5.00 to 6.00 lower and oil is 50 to 60 points lower. The daily wire saw 136,000 metric tons sold to China. 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 $13.47, with the lower Bollinger Band at $12.98 as support which we are working to hold at midday. WHEAT: Wheat trade is 2 cents lower to 7 cents higher with Chicago action continuing to lead with firmer spread action as China secured another 372,000 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 firmer 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 $6.78 as resistance as we try to consolidate the recent gains further as we work on the seventh higher day in a row. ** 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.