DTN Midday Grain Comments 01/12 10:43

DTN Midday Grain Comments 01/12 10:43 Corn, Wheat Futures Lower at Midday; Soybeans Mixed Corn futures are 3 to 4 cents lower at midday Friday; soybean futures are narrowly mixed; wheat futures are 1 to 4 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents lower at midday Friday; soybean futures are narrowly mixed; wheat futures are 1 to 4 cents lower. The U.S. stock market is mixed at midday with the S&P 1 point higher. The U.S. Dollar Index is 3 points lower. The interest rate products are mostly higher. Energies have crude up 1.00 and natural gas up .04. Livestock trade is weaker. Precious metals are firmer with gold 39.00 higher. CORN: Corn futures are 3 to 4 cents lower at midday with early risk-on action fading after the overnight airstrikes in Yemen. On the report Friday morning, 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 this week but driving demand will remain soft. South American weather remains mostly favorable for first-crop corn. On the March chart, the 20-day moving average at $4.69 is nearby resistance, which we faded from last week, with the Lower Bollinger Band at $4.52 1/2 as chart support just above the $4.51 3/4 fresh low. SOYBEANS: Soybean futures are narrowly mixed at midday with oil strength fading, and trade remaining deeply oversold going into the report. Meal is narrowly mixed and oil is flat to 10 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. 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 $12.20. WHEAT: Wheat futures are 1 to 4 cents lower at midday with trade back to support levels yet again in pre-report action. On the report, trade is looking for carryout at 658 mb, and stocks at 1.387 bb versus 1.312 bb 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 colder weather returning in the Black Sea area and Southern Hemisphere harvest winding down. Matif wheat is weaker at midday. 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 $6.12, which we've held this week. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2024 DTN, LLC. All rights reserved.