DTN Midday Grain Comments 01/03 10:59

DTN Midday Grain Comments 01/03 10:59 Corn, Wheat Futures Lower at Midday; Soybeans Higher Corn futures are 6 to 7 cents lower at midday Monday; soybeans futures are 5 to 6 cents higher; wheat futures are 14 to 16 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow down 40 points. The U.S. Dollar Index is 70 points higher. Interest rate products are weaker. Energies are mixed with crude up .60. Livestock trade is mixed. Precious metals are weaker with gold down 29.10. CORN: Corn futures are 6 to 7 cents lower at midday to open 2022 with flat spread action. Early gains faded into a test of support as the soybean spillover boost evaporates with little fresh bullish news to push corn. Ethanol margins should remain in the current range into the new year with signs of short-term driving demand fading seasonally, along with an uptick in work-from-home action again. Basis should remain rangebound to start the new year. Trade will start watching South American weather more as we get closer to the key weather time frames on new crop there, as well as soybean progress for the timing of double-crop planting. Weekly export inspections were soft at 596,092 metric tons (mt). On the March contract we have support at the 20-day moving average of $5.95, which we are below at midday, and then the lower Bollinger band at $5.77. SOYBEANS: Soybean futures are 5 to 6 cents higher at midday with trade snapping back to start the new year before fading. Weather is mixed in South America and there is little fresh news on the demand front. Meal is $5.00 to $6.00 higher and oil is flat to 10 points lower. Basis remains mostly flat in the short term with the export wire quiet to end last year. Weekly export inspections were disappointing at 1.192 million metric tons (mmt). South American weather remains wetter to the north, drier to the south after some showers worked through. On the March soybean chart, we have resistance at the fresh high of $13.84 1/2, and the 20-day moving average well below the market at $13.08 as support. WHEAT: Wheat futures are 14 to 16 cents lower with trade seeing broad selling as we fade back to the recent lows with little change in Northern Hemisphere weather or short-term demand drivers. The dollar is back above 96, keeping trade off the upper end of the range. Plains weather looks drier with a little snow cover out of the last system, while temps continue to fluctuate. Spring wheat is flat vs. Chicago, moving the premium to $2.12 on the March; KC is at a 31-cent premium in flat action. Weekly export inspections were soft at 141,816 mt. KC March chart resistance is at the 20-day moving average of $8.18, which we are just below, with the lower Bollinger band at $7.80 as further support. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.