DTN Grain Midday: Corn, Soybeans Lower; Wheat Higher

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    Corn futures are 1 to 2 cents lower at midday Tuesday; soybean futures are 10 to 12 cents lower; wheat futures are 13 to 19 cents higher.

    CORN:

    Corn futures are 1 to 2 cents lower at midday with trade bouncing back from a test of the lows Tuesday morning and seeing firmer spread action to start the week. Ethanol margins will continue to be squeezed by tepid short-term demand with production expected to slide further as demand looks to remain soft into next week. Basis should remain rangebound to slightly weaker in the short term with weather likely to slow short-term movement.

    Trade will continue 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 with some relief rains to the south. Weekly export inspections improved a bit at 1.204 million metric tons (mmt). On the March contract we have resistance at the 20-day moving average at $5.99, then the lower Bollinger band at $5.85 as further support, which we bounced from Friday.

    SOYBEANS:

    Soybean futures are 10 to 12 cents lower at midday with trade firming back from the overnight lows with some relief rains in South American and a better short-term forecast for the moment as early harvest expands with the December crush report coming Tuesday morning as well. Meal is $3.00 to $14.00 lower and oil is 25 to 35 points higher. Basis remains mostly flat in the short term.

    Crush margins remain solid with future renewable diesel demand likely to keep good support under oil going forward. Weekly export inspections bounced back sharply at 1.720 mmt, and 239,486 metric tons (mt) were on the daily wire as sold to Mexico. On the March soybean chart, we have resistance at the fresh high at $14.15 which we scored a week ago, with trade fading below the 20-day at $13.63 at midday with the lower Bollinger Band well below the current action at $13.05.

    WHEAT:

    Wheat futures are 13 to 19 cents higher at midday with oversold conditions and political worries helping push trade back off the lower end of the range with action just off the highs at midday. The dollar is bouncing back to the middle part 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 with other Northern Hemisphere weather concerns fading for the moment while political fears ramp up again.

    Spring wheat is softer vs. Chicago, moving the premium to $1.32 on the March, with KC at a 4-cent premium in flat action as well. Weekly export inspections improved at bit at 369,188 mt. KC March chart support is the lower Bollinger band at $7.34 with the 20-day moving average at $8.00, still well above the market.

    MARKET SUMMARY:

    The U.S. stock market is weaker with the Dow off 555 points. The U.S. Dollar Index is 55 points higher. Interest rate products are lower. Energies are firmer with crude up 1.15. Livestock trade is mostly lower. Precious metals are weaker with gold off 4.00.

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