DTN Midday Grain Comments 12/19 11:26

DTN Midday Grain Comments 12/19 11:26 Wheat Futures Higher at Midday; Corn, Soybeans Lower Corn futures are 4 cents lower at midday Tuesday; soybean futures are 12 to 15 cents lower; wheat futures are 3 to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 cents lower at midday Tuesday; soybean futures are 12 to 15 cents lower; wheat futures are 3 to 8 cents higher. The U.S. stock market is lower at midday with the S&P 28 points lower. The U.S. Dollar Index is 45 points lower. The interest rate products are firmer, continuing to illustrate a short-term trend to lower rates after a peak in late October. In energies, crude is up 1.20 and natural gas down .04. Livestock trade is mixed with cattle mostly higher and hogs lower. Precious metals are firmer with gold up 20. CORN: Corn futures are 4 cents lower at midday and near the daily low with trading ranges of over a nickel. There is little fresh news around to limit the upside. The chart has been in a slow downward channel for the past two weeks and we are now challenging the lows. Ethanol margins look to remain rangebound in the short term, but market bulls hope ethanol prices will rally in the weeks ahead to bring back better and bigger margins. Basis should remain steady toward yearend with farmer movement, at least light, expected after the first of the year. South American weather looks good but not perfect for Argentina and Brazil. There just is not friendly news at the moment coming from weather. On the March chart the 20-day moving average at $4.82 is nearby resistance with the Lower Bollinger Band at $4.72 chart support just above the $4.70 1/2 late November low. SOYBEANS: Soybean futures are 12 to 15 cents lower at midday, giving back the Monday gains. Meal is trading around $7 lower and soybean oil is down 15 points. The forecasts looked a little better for rain easing the buying Tuesday. January beans have remained around $.75 or more below the two-month high. A sale was reported to unknown destinations on the daily export wire. Weekly export news is also providing support to the complex on the recent break. Weather should give us day-to-day direction this week and next with no big activity expected during the holidays. The January soybean chart has resistance at the 20-day moving average at $13.26 and then the 100-day at $12.36. The $12.92 recent low is nearby support, then the lower Bollinger Band at $12.85. WHEAT: Wheat futures are 3 to 8 cents higher with limited selling interest found overnight into Tuesday morning with wheat prices in the lower part of our trading range. The Plains should see mostly warmer temps over the holidays with some moisture potential for the eastern and Southern Plains in the 7-day forecast. World weather looks benign for the Northern Hemisphere overall, while Southern Hemisphere harvest will continue to move forward. The export news needs to improve to help the argument for a bull move. Numbers like the weekly export inspections at 284,792 metric tons Monday are just not good. On the KC March chart, resistance is at the 20-day moving average at $6.37 1/2, which we are challenging here at midday. The next resistance level is up at the $6.51 50-day moving average. Support is at the lower Bollinger Band at $6.02. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2023 DTN, LLC. All rights reserved.