DTN Midday Grain Comments 01/08 10:50

DTN Midday Grain Comments 01/08 10:50 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 8 to 9 cents lower at midday Monday; soybean futures are 16 to 17 cents lower; wheat futures are 10 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 8 to 9 cents lower at midday Monday; soybean futures are 16 to 17 cents lower; wheat futures are 10 to 18 cents lower. The U.S. stock market is mixed at midday with the S&P 20 points higher. The U.S. Dollar Index is 30 points lower. The interest rate products are firmer. Energies have crude down 3.30 and natural gas off .10. Livestock trade is mixed after early strength. Precious metals are mixed with gold 7.00 lower. CORN: Corn futures are 8 to 9 cents lower at midday with trade continuing to grind to fresh lows as the market remains oversold with the stocks and WASDE reports pending at the end of the week. Ethanol margins will continue to struggle with soft driving demand with winter storms limiting travel and pressure on unleaded values limiting blender margins. Basis looks to stay fairly steady in the short term. South American weather remains mostly favorable for first-crop corn. Weekly export inspections improved at 856,597 metric tons (mt). On the March chart, the 20-day moving average at $4.74 is nearby resistance, which we faded from last week, with the Lower Bollinger Band at $4.59 1/2 as chart support just above the $4.52 fresh low. SOYBEANS: Soybean futures are 16 to 17 cents lower at midday with trade extending near-term oversold conditions to fresh lows as weather and production estimates continue to stabilize and the outside markets add additional headwinds with sliding energy values. Meal is 1.50 to 2.50 lower and oil is 40 to 50 points lower. Weekly export inspections were soft at 647,749 mt. Basis is expected to remain flat to start the year. Better weather looks to continue for the drier areas of South America for the most part in the short term. The March soybean chart has resistance at the recent gap at $12.92. The $12.36 fresh low is nearby support with the lower Bollinger Band just above the market at $12.50. WHEAT: Wheat futures are 10 to 18 cents lower at midday with trade continuing the choppy action with spillover pressure from row crops struggling and the dollar holding the recent rally for the most part. The Plains should develop snow cover over the next couple days ahead of the cold snap. World weather issues look limited as well with Southern Hemisphere harvest heading to the homestretch. Matif wheat is weaker as well. Weekly export inspections showed a bit of improvement at 491,074 mt. On the KC March chart, resistance is at the 20-day moving average at $6.34 1/2. Support is at the lower Bollinger Band at $6.12, which we tested this morning. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2024 DTN, LLC. All rights reserved.