DTN Midday Grain Comments 01/16 11:25
Grains Mixed at Midday
Soybeans are the midday leader with flat corn trade, and weaker wheat action.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher at midday with the Dow futures up
150 points. The interest rate products are higher. The dollar index is 35
lower. Energies are lower with crude down 0.35. Livestock trade is higher.
Precious metals are mixed with gold 0.40 lower.
Corn trade is narrowly mixed at midday with trade struggling to hold early
gains with action remaining at the lower end of the range. Ethanol margins
should remain stable, with warmer weather coming to boost production, while the
feed demand should moderate with the warm up. Ethanol futures have edged
slightly lower with the energy complex this morning. Basis has been flat to a
little better with carry steady to slightly stronger to start the week. The
weekly export inspections remained soft at 543,689 metric tons. On the March
chart support is the $3.45 contract low. Resistance is at the 20-day moving
average at 3.50 then the 50-day at $3.53.
Soybean trade is 4 to 6 cents higher at midday with trade building on the
strong finish from Friday with a somewhat drier forecast for Brazil and mixed
weather for Argentina. Trade is about 4 cents off the high off the session at
midday. Meal is $3 to $4 higher, and 15 to 25 points lower. South American
weather is drier in Northern Brazil and wetter in southern Brazil, along with
mixed in Argentina. Basis and carry remains mostly sideways. The world export
inspections were up slightly at 1.23 million metric tons. On the March, support
is the 10-day and 20-day $9.64 that we moved back, and resistance the 50-day at
Wheat trade is flat to 6 cents lower at midday with Chicago the downside
leader at midday with spring wheat near unchanged. The current shot of cold
area should fade out, with warmer weather on tap, and potentially some better
moisture in the extended forecast. The dollar fallen down to 90 on the index
with the general trend remaining down as the old support levels failed to hold
at the end of last week. On the March Kansas City contract, chart support is
the lows at $4.10, with the day low of $4.21 becoming nearby support with the
20-day at $4.29 as the first level of resistance.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Advisor.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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