DTN Midday Grain Comments 01/11 10:55

DTN Midday Grain Comments 01/11 10:55 Soybean Futures Higher at Midday; Corn, Wheat Lower Corn futures are 1 to 2 cents lower at midday Thursday; soybean futures are 1 to 2 cents higher; wheat futures are 5 to 8 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents lower at midday Thursday; soybean futures are 1 to 2 cents higher; wheat futures are 5 to 8 cents lower. The U.S. stock market is weaker at midday with the S&P 35 points lower. The U.S. Dollar Index is 30 points higher. The interest rate products are mixed. Energies have crude up 2.20 and natural gas up .05. Livestock trade is mixed. Precious metals are weaker with gold 1.00 higher. CORN: Corn futures are 1 to 2 cents lower with trade holding off the lows as the midweek sideways action continues; position-squaring is likely to pick up pre-report. On the WASDE report Friday, trade is looking for domestic carryout at 2.105 billion bushels (bb), and stocks at 12.050 bb versus 10.803 bb last year. Ethanol margins will remain under pressure with some improvement in blender margins. South American weather remains mostly favorable for first-crop corn. The daily export wire saw some life with 175,000 metric tons (mt) sold to Mexico. Weekly export sales were still soft from the holidays at 487,600 mt. On the March chart the 20-day moving average at $4.70 is nearby resistance which we faded from last week with the Lower Bollinger Band at $4.54 1/2 as chart support just above the $4.51 3/4 fresh low. SOYBEANS: Soybean futures are 1 to 2 cents higher at midday with trade working to find some footing amid oversold conditions as we head toward the Grain Stocks/WASDE report Friday. Meal is flat to 1.00 lower, and oil is 40 to 50 points higher. On the report, trade is looking for carryout at 243 million bushels (mb), and stocks at 2.975 bb versus 3.021 bb last year. Weekly export sales were soft at 280,400 mt of old crop; 65,400 of meal; and oil saw a reduction of -1,500 mt. Basis is expected to remain flat on the recent trend to start the year. Better weather looks to continue for the drier areas of South America in the 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 below the market at $12.27. WHEAT: Wheat futures are 5 to 8 cents lower at midday with trade moving sideways in the lower end of the range with wheat-specific news limited. On the report, trade is looking for carryout at 658 mb, and stocks at 1.387 bb versus 1.312 last year. The Plains should maintain snow cover ahead of the deeper cold snap coming this weekend. World weather issues look limited as well with warmer weather in the Black Sea area and Southern Hemisphere harvest winding down. Matif wheat is sharply lower at midday. Weekly export sales were soft at 128,100 mt. On the KC March chart, resistance is at the 20-day moving average at $6.30 1/2. Support is at the lower Bollinger Band at $6.14, which we tested Monday. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2024 DTN, LLC. All rights reserved.