DTN Midday Grain Comments 01/04 10:59

DTN Midday Grain Comments 01/04 10:59 Corn, Soybeans Futures Higher Tuesday; Wheat Mixed Corn futures are 15 to 16 cents higher at midday Tuesday; soybean futures are 25 to 26 cents higher; wheat futures are 5 cents lower to 5 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow up 225 points. The U.S. Dollar Index is 3 points lower. Interest rate products are weaker. Energies are mixed with crude up .70. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold up 13.50. CORN: Corn futures are 15 to 16 cents higher at midday with firm spread action as trade works back through the $6.00 area with the front months inverted on implied strong demand. Ethanol margins should remain in the current range 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 as well as soybean progress for the timing of double-crop planting into later spring with first crop estimates cut by private sources Monday. On the March contract, we had resistance at the 20-day moving average at $5.95, which we surged past this morning, then the upper Bollinger band at $6.11 as further resistance. SOYBEANS: Soybean futures are 25 to 26 cents higher at midday with trade working back towards the upper end of the range. Some private sources cut crop size estimates Monday with the recent weather pattern remaining intact. Meal is flat to $1.00 higher and oil is 130 to 140 points higher, keeping crush margins in the recent range. Basis remains mostly flat in the short term with the daily export wire quiet to end last year. South American weather remains wetter to the north and drier to the south after some showers worked through. On the March soybean chart, we have resistance at the fresh high at $13.84 1/2, which we have traded near Tuesday morning, and the 20-day moving average well below the market at $13.12 as support. WHEAT: Wheat futures are 5 cents lower to 5 cents higher with winter wheats leading as early strength fades despite the dollar relaxing and row-crop strength with limited fresh bullish news for wheat. The dollar is pulling back from its test of 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, keeping stress intact. Spring wheat is soft vs. Chicago, moving the premium to $2.01 on the March, with KC at a 32-cent level in firmer action. KC March chart resistance is at the 20-day moving average at $8.16, which we are solidly below with the lower Bollinger band at $7.76 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.