DTN Midday Grain Comments 01/08 11:39

DTN Midday Grain Comments 01/08 11:39 All Grains Higher at Midday Trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow down 65 points. The interest rate products are lower. The dollar index is 27 points higher. Energies are mixed with crude $0.60 lower. Livestock trade is mostly lower. Precious metals are lower with gold down $3. CORN Corn trade is 3 to 4 cents higher at midday with trade finding some light buying with some short covering/short profit taking ahead of large number of USDA reports due out on Tuesday. Corn basis should remain steady in the near term with some localized areas of strength surfacing this week. Commercial buying on a scale down basis should continue surface on breaks. Ethanol margins remain under pressure with crude failing to hold gains yet again. On the March chart we have the 20-day at $3.67 as key resistance with the $3.48 low made on this Thursday as 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 4 to 5 cents higher at midday with light commercial buying continuing to support the trade. Meal is $3 to $4 higher and oil is 10 to 20 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, which may be disrupted by rains in the near term. Basis should remain steady towards the weekend. March soybean chart support is at the recent lows at $8.53, with the 20-day at 8.68 resistance which we have tested this morning.. WHEAT Wheat trade is 6 to 11 cents higher across the three contracts at midday with trade following the overnight strength in the row crops, along with more profit-taking vs. shorts this morning. Nearby weather concerns are limited for now, but US winter wheat would be vulnerable to a cold snap. The Russian wheat has finally gotten some snow cover, but remains very cold. 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, and then the 20-day at $4.73, which we have moved above at midday. 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.