DTN Midday Grain Comments 01/31 10:48

DTN Midday Grain Comments 01/31 10:48 Corn and Wheat Lower, Beans Higher Midday Monday Corn trade is 7 to 8 cents lower, beans are 16 to 18 cents higher and wheat is 13 to 17 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow up 20 points. The dollar index is 0.40 lower. Interest rate products are mostly lower. Energies are firmer with crude up $0.60. Livestock trade is solidly higher. Precious metals are higher with gold down $11.00. CORN: Corn trade is 7 to 8 cents weaker at midday Monday with softer spread action after new highs were scored for old- and new-crop action, following the lead of soybeans to start the week. We have softer trade on long liquidation as volume picked up during the day session. Ethanol margins continue to deteriorate short term with better demand needed to put a dent in the growing stocks. Trade will continue to look for further sale confirmation on the daily wire with weekly export inspections holding up well at 1.036 million metric tons (mmt) inspected. Basis should remain range bound to slightly weaker short term with weather likely to slow short-term movement in some areas. Trade will continue watching South American weather as we head into second crop planting and development. On the March contract, we have support at the 20-day moving average at $6.05 then the fresh high scored Monday morning at $6.42 1/2 as resistance. SOYBEANS: Soybean trade is 16 to 18 cents higher at midday with mixed spread action as trade surged toward $15.00 before fading off the overnight highs and demand ideas trumping short-term South American rains to start the week. Meal is $6.00 to $7.00 higher and oil is 0.35 cent to 0.45 cent lower. Basis is expected to remain flat to weaker short term. Crush margins are hanging in there with the product strength to start, with meal finally consolidating over $400 per ton with oil pulling back from the highs. Early harvest in under way in South America, likely to further crimp U.S. export competitiveness in February with a cooler and wetter short-term forecast. Weekly export inspections remained in the recent range at 1.411 million metric tons, and 129,000 metric tons split between old and new crop were announced as sold to China. On the March soybean chart, we have resistance at the fresh high at $14.96 3/4, with trade well above the 20-day at $14.05 support. WHEAT: Wheat trade is 13 to 17 cents lower with trade fading from 15-cent higher early action. The dollar is remains near new highs but is seeing broad selling at midday. Weather in the Plains looks a little drier in the short term with the crop likely to stay dormant and some areas having better snow cover now. Spring wheat is firmer versus Chicago moving the premium to 1.38 cents on the March, with KC at a 19-cent premium in firmer action. Weekly export inspections remained rangebound at 361,375 metric tons KC March chart support is the 20-day at $7.90, which we are back below at midday, with resistance the upper Bollinger Band at $8.30. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.