DTN Midday Grain Comments 01/14 11:33

DTN Midday Grain Comments 01/14 11:33 Wheat, Beans Lower at Midday Corn and beans continue to consolidate around the Tuesday post report highs, wheat is giving back some of those gains at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are firming with the Dow futures up 160 points. The interest rate products are steady to lower. The dollar index is 17 points higher. Energies are higher with crude up $0.80. Livestock trade is mixed. Precious metals are lower with gold down $6. CORN Corn trade is a penny higher at midday; the daily range has only been 4 cents with trade 2 1/2 lower to 1 1/2 higher. This action today and yesterday illustrates come complacency in the marketplace following the USDA report which provided some slightly friendly fundamental news. So market bears and the big fund-short position appears to have taken a break, and market bulls argue the futures are too low to support needed 2016 acreage. But no one can get overly bullish due to the domestic and global supplies staying heavy along with limited export demand. The energy complex remains near the multi-year lows keeping continued pressure on the ethanol margins for producer and blender. The weekly export sales showed improvement at 669,200 metric tons. On March futures we are just above the 10-day moving average at $3.55 which is nearby support with the 20-day at $3.61 nearby resistance. The 50-day at $3.69 is resistance above the 20-day which is more major resistance. The contract low at $3.48 1/2 remains major support. SOYBEANS Soybean trade is 1 to 2 cents lower in quiet midday trade, meal is down $2 and bean oil is up 25 points. Export news has been more active this week then this morning the weekly sales report was strong at 1.13 million metric tons of soybeans, 64,900 of meal, and 41,200 of oil. We did inch above the two-week high printed on Tuesday following the USDA report, so the trend is higher yet quiet. The forecast for South America limits major threats in the near term, while early harvest continues to gain steam with mixed yields, although some dryness is returning in the extended forecast keeping the South American weather view point mixed but limiting downside. On the March soybean chart the 20-day at $8.71 is support then the 10-day at $8.66. The 100-day at $8.87 is major resistance at this juncture. WHEAT Wheat trade is 3 to 7 cents lower across the three contracts at midday following another low weekly sales number. Demand concerns and improved forecasts for the dry portions of India have kept buyers away in higher territory. The dollar is higher at midday and remains near the upper end of the range keeping the pressure on US competitiveness. The weekly export sales remain soft at 274,700 metric tons. Weather lacks major winter-kill threats in the near term. On the March Kansas City chart support is the 10-day at $4.66 with major support at the $4.52 1/4 contract low. Resistance is at $4.77 50-day moving average which we flirted above Tuesday and yesterday. 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.