DTN Midday Grain Comments 01/05 11:30

DTN Midday Grain Comments 01/05 11:30 All Grains Higher at Midday Trade is higher across the board at midday with flat to lower momentum. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 40 points. The interest rate products are mixed. The dollar index is 67 points higher. Energies are mixed with crude $0.50 lower. Livestock trade is mostly higher. Precious metals are higher with gold up $2. CORN Corn trade is a penny higher at midday with trade finding some light buying after the poor start to the week. Turn-a-round Tuesday has been mentioned but also a bearish chart trend. These trade ideas will battle it out this afternoon. Basis should remain steady to soft with improved weather for movement here on the first week of the new year. Ethanol margins have gained from the weak corn, but ethanol futures are drifting lower, along with unleaded gasoline futures. On the March chart we have the 20-day at $3.68 as key resistance with the $3.50 low made on Monday as new support. SOYBEANS Soybean trade is 4 to 6 cents higher this morning with light commercial buying continuing to support trade. Meal is $2 to $3 higher, and oil is 20 to 30 points higher. The drier areas of Brazil are expected see an expansion in rains over the next 10 days, reducing concerns but some dry pockets will persist. Early harvest is underway in some areas of Brazil as well, potentially adding more competition for U.S. exports in the near term. Basis should steady after softening last week on flooding issues. March soybean chart support is at the recent lows at $8.53, with the 20-day at 8.74 resistance. WHEAT Wheat trade is 3 to 5 cents higher across the three contracts at midday with trade following the light strength in the row crops this morning. The dollar turning stronger will limit buying enthusiasm as U.S. competitiveness slides. Ukraine is likely to see some winter kill in the near term, but the extended forecast shows some warmth. The U.S. wheat belt is to see colder weather early next week which could be a concern if snow cover doesn't materialize. On the March Kansas City chart support is at the $4.52 1/4 contract low printed at this morning, with nearby resistance the lowest major moving average at $4.70 the 10-day moving average. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.