DTN Midday Grain Comments 12/18 12:04

DTN Midday Grain Comments 12/18 12:04 Corn, Soybean Futures Lower at Midday; Wheat Mixed Corn futures are 2 to 3 cents lower at midday Wednesday; soybean futures are 21 to 23 cents lower; wheat futures are narrowly mixed. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents lower at midday Wednesday; soybean futures are 21 to 23 cents lower; wheat futures are narrowly mixed. The U.S. stock market is firmer at midday with the S&P 11 points higher. The U.S. Dollar Index is 16 points higher. The interest rate products are mixed. Energy trade is firmer with crude up 1.25 with natural gas .09 higher. Livestock trade is mixed. Precious metals are mixed with gold off 8.00. CORN: Corn futures are 2 to 3 cents lower with trade fading to the lower end of the recent range with negative spillover pressure from soybeans. The weekly ethanol report showed production up by 25,000 barrels per day (bpd) back to the fall highs with stocks unchanged. The daily export wire saw 135,000 metric tons (mt) of corn sold to Colombia. Weekly export sales are expected to be in the 600,000 to 800,000 mt range Thursday. Basis action is expected to remain flat to weaker toward the end of the year. On the March chart, the 20-day moving average at $4.38 is support with the fresh high at $4.51 as resistance. SOYBEANS: Soybean futures are 21 to 23 cents lower with another fresh low scored Wednesday morning with firmer spread trade but broad product weakness continuing along with continued Brazilian currency weakness weighing on trade as we get more oversold. Meal is 6.00 to 7.00 lower and oil is 80 to 90 points lower. South America weather is expected to remain mostly good for development as early harvest starts to draw nearer with relief rains expected for the drier areas short term. The daily export wire saw sales of 135,000 mt of soybean cake and meal to Colombia. Weekly export sales are expected to be in the 1.2 million metric tons (mmt) to 1.5 mmt range Thursday. Basis is expected to remain flat to firmer short term. On the January chart, trade has resistance at the 20-day moving average at $9.87 with the lower Bollinger Band at $9.71 as support, which we are below at midday, then the fall lows at $9.56, which we have tested this morning. WHEAT: Wheat futures are narrowly mixed at midday with early strength fading amid row-crop weakness as trade stays rangebound overall. The Plains look to be warmer into the end of the month with better moisture possibilities the second week. Black Sea conditions show little change in the short term after the poor start to the fall. MATIF wheat is holding near the recent highs with spreads versus U.S. origin near the fall highs. Weekly export sales are expected to be in the 200,000 to 350,000 mt range. On the KC March chart, resistance is the 20-day moving average at $5.56, which we are just below at midday, with the Lower Bollinger Band at $5.37 as support. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.