DTN Midday Grain Comments 01/05 10:46

DTN Midday Grain Comments 01/05 10:46 Corn and Beans Lower, Wheat Higher at Midday Friday Corn trade is 1 to 2 cents higher, beans are 9 to 10 cents lower and wheat trade is 1 to 4 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer at midday Friday with the S&P 20 points higher. The dollar index is 25 points lower. Interest rate products are mixed. Energies have crude up 1.85 and natural gas off .07. Livestock trade is mostly higher. Precious metals are mixed with gold 9.00 higher. CORN: Corn trade is 4 to 5 cents lower at midday with trade fading back to the lows after the midweek light rebound with fresh news remaining lacking. Ethanol margins continue to struggle with driving demand needing to improve to draw down inventories and boost blending. Basis looks to stay steady to start the year. South American weather remains mostly favorable for the first crop corn. The daily wire continued to be quiet as we returned from the holidays with weekly sales a marketing year low during the holiday week at 367,500 metric tons. On the March chart, the 20-day at $4.75 is nearby resistance which we faded from last week with the lower Bollinger Band at $4.61 1/2 chart support just above the $4.61 1/4 fresh low. SOYBEANS: Soybean trade is 8 to 9 cents lower at midday. Trade continues to see broad selling pressure with stabilizing weather and production estimates out of Brazil and product action soft as meal continues to fade. Meal is 3.50 to 4.50 lower and oil is 35 to 45 points lower. The daily wire remains quiet as we wait for further demand developments into spring with weekly sales a marketing year low at 201,600 metric tons of old crop, 600 of new, with meal at 81,400 metric tons and oil at 1,200. Basis is expected to remain flat on the recent trend to start the year. Better weather looks to continue for the drier areas of the South America short term. The March soybean chart has resistance at the fresh gap at 12.92. The $12.57 1/2 fresh low is nearby support with the lower Bollinger Band just above the market at 12.62. WHEAT: Wheat trade is 3 to 4 cents higher at midday with light buying continuing after the midweek bounce, but we have pulled back from the highs of the session. The Plains could see additional moisture about three to four days out with placement of snow still uncertain. World weather issues look limited as well with Southern Hemisphere harvest heading to the homestretch. Matif wheat is flat to a little lower this morning. Weekly export sales were soft at 131,600 metric tons of old crops, and 4,300 of new. On the KC March Chart, resistance is at the 20-day moving average at $6.37 1/2. Support is at the lower Bollinger Band at $6.12 which we held yesterday. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2024 DTN, LLC. All rights reserved.