DTN Midday Grain Comments 01/09 10:51

DTN Midday Grain Comments 01/09 10:51 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 3 to 4 cents higher at midday Tuesday; soybean futures are 2 to 3 cents higher; wheat futures are 10 to 17 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents higher at midday Tuesday; soybean futures are 2 to 3 cents higher; wheat futures are 10 to 17 cents higher. The U.S. stock market is mixed at midday with the S&P 12 points lower. The U.S. Dollar Index is 35 points higher. The interest rate products are mostly lower. Energies have crude up 1.60 and natural gas up .10. Livestock trade is firmer. Precious metals are mixed with gold 1.00 higher. CORN: Corn futures are 3 to 4 cents higher with trade seeing light, two-sided action overnight before finding broader short-covering as the day session progresses as we start to ease oversold conditions. 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. On the March chart, the 20-day moving average at $4.72 is nearby resistance, which we faded from last week with the Lower Bollinger Band at $4.55 1/2 chart support just above the $4.51 3/4 fresh low. SOYBEANS: Soybean futures are 2 to 3 cents higher at midday with mixed product action and trade still deeply oversold after the recent washout along with little change to the South America weather forecast. Meal is .50 to 1.50 lower and oil is 60 to 70 points higher. Prime export for the U.S. season drawing to a close. 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 near term. The March soybean chart has resistance at the recent gap at $12.92. The $12.34 fresh low is nearby support with the lower Bollinger Band just below the market at $12.40. WHEAT: Wheat futures are 10 to 18 cents higher at midday with short-covering picking up during the day session after row crops start to bounce and KC action led us back to the middle of the recent range. The Plains should maintain snow cover ahead of the deeper cold snap. World weather issues look limited as well with warmer weather in the Black Sea area. Matif wheat is a bit firmer at midday as well. On the KC March chart, resistance is at the 20-day moving average at $6.32 1/2. Support is at the lower Bollinger Band at $6.12, which we tested 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.