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DTN Midday Grain Comments 01/24 10:55
Corn, Soybeans, Wheat Futures Lower at Midday
Corn futures are 1 to 2 cents lower at midday Friday; soybean futures are 4
to 5 cents lower; wheat futures are 7 to 10 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 1 to 2 cents lower at midday Friday; soybean futures are 4
to 5 cents lower; wheat futures are 7 to 10 cents lower. The U.S. stock market
is mixed with the S&P 1 point higher. The U.S. Dollar Index is 75 points lower.
The interest rate products are firmer. Energy trade is mixed with crude off .25
with natural gas .07 lower. Livestock trade is firmer with live cattle leading
again. Precious metals are firmer with gold up 17.00.
CORN:
Corn futures are 1 to 2 cents lower at midday with early broad selling
across the ag contracts easing at midday with the sharply weaker dollar helping
to offset the reduction in Argentine export taxes. Weekly ethanol production
eased slightly lower with colder weather, while inventories remain larger,
keeping ethanol margins under pressure. Weekly export sales were strong at 1.66
million metric tons (mmt). Basis action continues to wobble as bushels move
into the commercials' hands. On the March chart, the 20-day moving average at
$4.68 is support with the fresh high at $4.92 3/4 as resistance.
SOYBEANS:
Soybean futures gapped lower on the open after the Argentina news, but have
firmed back and remain 4 to 5 cents lower at midday with oil retaking the lead
in the product complex. Meal is 8.00 to 9.00 lower and oil is 20 to 30 points
higher. South America weather continues to keep overall concerns limited in the
near term as early harvest will continue to grow. Weekly export sales were
strong at 1.492 mmt with products easing a little with 208,700 of meal, and
2,900 of oil. Basis should stabilize and remain more toward flat in the near
term. On the March chart, trade has support at the 20-day moving average at
$10.22, with the fresh high at $10.73 1/2 the next level of resistance.
WHEAT:
Wheat futures are 7 to 10 cents lower at midday with long liquidation
returning despite the sharply lower dollar as we remain rangebound overall. The
Plains are expected to be mostly warmer and drier into the end of the month.
MATIF wheat is sharply lower Friday morning as well with little change to Black
Sea weather in the short term while the dollar continues to hold the lower end
of the range as the spread remains flat there. Weekly export sales were soft at
164,800 metric tons (mt) of old crop, and 50,500 mt of new. On the KC March
chart, support is the 20-day moving average at $5.56 with the Upper Bollinger
Band at $5.76 as resistance.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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