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DTN Midday Grain Comments 01/22 10:47
Corn, Soybean Futures Lower at Midday; Wheat Higher
Corn futures are 2 to 3 cents lower at midday Wednesday; soybean futures are
6 to 8 cents lower; wheat futures are 1 to 3 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 2 to 3 cents lower at midday Wednesday; soybean futures are
6 to 8 cents lower; wheat futures are 1 to 3 cents higher. The U.S. stock
market is firmer with the S&P 45 points higher. The U.S. Dollar Index is 20
points higher. The interest rate products are weaker. Energy trade is mixed
with crude off .20 with natural gas .09 higher. Livestock trade is mostly
higher. Precious metals are mixed with gold up 11.50.
CORN:
Corn futures are 2 to 3 cents lower with mixed spread action as we
consolidate at the upper end of the range and fade back from the fresh highs
scored early in the session. Ethanol margins continue to see pressure from corn
strength and the unleaded pullback with the weekly report delayed until
Thursday. The daily export wire saw 136,000 metric tons (mt) sold to unknown
destinations. Basis action will likely return to a lower drift if futures
strength holds with good movement into the hands of the commercials. On the
March chart, the 20-day moving average at $4.62 is support with the fresh high
at $4.92 1/4 as resistance.
SOYBEANS:
Soybean futures are 6 to 8 cents lower at midday with trade scoring a fresh
high before reversing lower with overbought conditions growing. Meal is 4.50 to
5.50 higher and oil is 120 to 130 points lower. South America weather remains
in the recent pattern with eventual relief for Argentina expected later in the
month with early harvest set to expand soon in Brazil. Basis should stabilize
and remain more towards flat near term. On the March chart, trade has support
at the 20-day moving average at $10.15, with the fresh high at $10.73 1/2 the
next level of resistance.
WHEAT:
Wheat futures are 1 to 3 cents higher at midday with trade working to extend
the top of the recent range with the cheaper dollar and cold weather stress
boosting action. The Plains are expected to warm after Wednesday with some
moisture potential returning in the extended forecast. MATIF wheat is holding
gains despite the dollar pullback with the spread narrowing a bit. On the KC
March chart, support is the 20-day moving average at $5.54, which we snapped
back above Tuesday with the Upper Bollinger Band at $5.73 as further
resistance, which we are above at midday.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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