DTN Midday Grain Comments 01/29 10:49

DTN Midday Grain Comments 01/29 10:49 Corn, Soybean and Wheat Lower at Midday Monday Corn trade is 4 to 6 cents lower. Beans are 9 to 10 cents lower and wheat trade is 10 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer at midday with the S&P 9 points higher. The dollar index is 20 points lower. The interest rate products are mixed. Energies have crude off .60 and natural gas is .08 lower. Livestock trade is firmer. Precious metals are mixed with gold .50 lower. CORN: Corn trade is 3 to 4 cents lower overnight with flat spread action with trade fading back to the lower end of the range again with broad risk-off sentiment to start the week. Outside markets have energies weaker and the dollar slightly firmer. Ethanol blender margins should be getting a boost from better short-term driving and firmer unleaded while corn and natural gas remain in the lower end of the range. South American weather pattern remains in line with recent days with some relief expected for the areas with recent dryness. The daily wire was quiet Friday with weekly export inspections expected to be in the 800,000 to 1.1 million metric ton (mmt) range. Basis will likely flatten out as the weather improves this week. On the March chart, the 20-day at $4.53 is nearby resistance with the lower Bollinger Band at $4.35 3/4 just below the $4.36 3/4 fresh low as support. SOYBEANS: Soybean trade is 5 to 7 cents lower with trade firming back slightly from the fresh lows scored overnight with little change to South American weather short term and product values still under pressure. Meal is narrowly mixed with oil 45 to 55 points lower. The short-term weather pattern in South America keeps some stress to the south with relief expected soon while the north continues to see better weather with local Argentina harvest projections being revised higher. The daily wire saw 100,000 metric tons (mt) of meal sold to unknown Monday with weekly export inspections in the 500,000 to 750,000 mt range. Basis should remain flat short term. The March soybean chart has resistance at the 20-day moving average at $12.38. The $11.98 fresh low is nearby support with the lower Bollinger Band below the market at 11.87. WHEAT: Wheat trade is 7 to 11 cents lower overnight with trade fading back to the middle of the recent range with the risk-off sentiment and firmer dollar this morning. The Plains will continue to shed snow cover with the warmer weather this week. Matif wheat has faded back to the lower end of the range adding pressure, with the dollar just off the upper end of the recent range. On the KC March Chart, support is at the 20-day moving average at $6.19 which we are edging back below overnight. Resistance is the upper Bollinger Band at $6.42. LIVE CATTLE: Live cattle are called 30 to 50 higher with feeders to follow suit with trade likely to press forward to start the week but profit vs. longs should pick up as we get more overbought and packers catch up further. Boxed beef action was firmer Monday with choice 1.85 higher to 300.53 and select 1.28 higher to 289.13 with volume poor. Packer pace should start the week strong again. Carcass weights should stabilize with the warmer weather. Export sales showed a bit of life last week. On the February contract, we have support at the 20-day at 172.45 and resistance at the fresh high at 179.15. LEAN HOGS: Lean hogs are called 20 to 50 higher with action likely to consolidate the upper end of the range with the recent fundamental improvements. Fresh pork was firmer, up .60 to 89.51, and cash up 1.64 to extend the week's gains, with packer margins narrowing a little with producers seeing good improvement this week but will need more. Packer pace should start the week at a good clip. Weekly export sales held up well despite the weather issues. On the February chart, trade has support at the 20-day at 70.85, with the upper Bollinger Band at 75.95 as the next round-up. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2024 DTN, LLC. All rights reserved.