DTN Midday Grain Comments 01/07 11:31

DTN Midday Grain Comments 01/07 11:31 Corn, Soybeans Lower at Midday Trade is mixed at midday in fairly quiet trade; nearby corn did inch to a new contract low. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 170 points. The interest rate products are higher. The dollar index is 40 points lower. Energies are higher with crude $.20 higher. Livestock trade is mostly lower. Precious metals are mixed with gold up $13. CORN Corn trade is 1 to 2 cents lower at midday with trade bouncing back after making a new low at $3.48 1/2 this morning. Crude made new lows trading down near $2 with February down to $32 a barrel, but we are back near $33.50. Corn basis should remain steady to soft with improved weather for movement here on the first week of the new year. Commercial buying on a scale down basis should continue to limit further weakness on any new visits to contract lows, which we saw again this morning. The weekly export sales were disappointing at 252,900 metric tons. On the March chart we have the 20-day at $3.67 as key resistance with the $3.48 low made on this morning nearby chart support. The trend remains down but good chance we could see some short profit taking ahead of the USDA numbers next Tuesday when we will see quarterly stocks, final 2015 production numbers along with the monthly supply and demand numbers. SOYBEANS Soybean trade is 1 to 3 cents lower at midday; we shook off early weakness and were a few pennies higher an hour ago, but the upside momentum stalled. Meal is flat to $1 lower, and oil is 20 to 30 points lower. The drier areas of Brazil are expected see additional rain near term before the pattern shifts south again in the longer term forecast. Early harvest is underway in some areas of Brazil as well, potentially adding more competition for U.S. exports in the near term, along with the concerns about forward Chinese demand based on the economy, although they did announce 246,000 metric tons sold to China this morning. Basis should remain steady towards the weekend. The weekly export sales were disappointing at 638,700 metric tons, 46,500 of meal, and 3,600 of oil. March soybean chart support is at the recent lows at $8.53, with the 20-day at 8.73 resistance. WHEAT Wheat trade is 2 lower to 2 higher across the three contracts at midday with trade looking to following the recovery of the row crop trade this morning. The dollar is sharply lower this morning, and will need to sustain weakness to promote short covering. Nearby weather concerns are limited for now, but U.S. winter wheat would be vulnerable to a cold snap. The Russian wheat has finally gotten some snow cover. The weekly export sales were very soft at 76,500 metric tons.. On the March Kansas City chart support is at the $4.52 1/4 contract low printed earlier this week, with nearby resistance the lowest major moving average at $4.65 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.