DTN Midday Grain Comments 01/19 11:18

DTN Midday Grain Comments 01/19 11:18 All Grains Higher at Midday Corn and wheat are higher at midday, soybeans are weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 120 points. The interest rate products are higher. The dollar index is 18 points higher. Energies are mixed with crude down 0.30; February futures hit a $28.36 a barrel low this morning. Livestock trade is sharply higher for cattle, mixed for hogs. Precious metals are mixed with gold down $5. CORN Corn trade is 4 to 5 cents higher at midday with follow-through buying after the firm finish last week and a calmer macro environment. Chart buying is helping corn firm here; the huge net fund short appears to be lifted and may do more if we could close higher here or higher. A two-day close above the 20-day moving average is a positive chart item, but if we can also close above the 50-day that even better for chart bulls. The weekly export inspections showed improvement at 581,479 metric tons. USDA announced 110,050 metric tons sold to unknown. Ethanol margins remain under pressure with the energy complex still very near the lows. On March futures we are above the 20-day which is now nearby support at $3.60 1/2 then the 10-day at $3.57 followed by the contract low at $3.48 1/2. Notable chart resistance is the 50-day at $3.68 which we are testing at midday, next resistance is the 2-month high at $3.82. SOYBEANS Soybean trade is 4 to 6 cents higher at midday after gapping slightly higher to start the week with more commercial buying support evident so far. Meal is narrowly mixed, and oil is 35 to 45 points higher. The forecast for South America has the near term drier again in many areas with some harvest delays in the wetter areas. The weekly export inspections remained strong at 1.395 million metric tons. On the March soybean chart the 20-day at $8.72 is support then the 10-day at $8.71. The 100-day at $8.86 is major resistance at this juncture, and we have tested that area this morning but have been unable to stay above it. The chart picture is sideways to higher giving limited expectations for next week. A weather issue followed by a move above the 100-day would likely uncover big stop orders above the 100-day, which is the biggest near-term item. WHEAT Wheat trade is 2 to 4 cents higher across the three contracts at midday following the lead of the firmer row crops. The dollar is stronger this morning which could limit buying enthusiasm as it approaches the upper end of the range again. The weather forecasts lacks significant near term cold threats in Russia and the U.S. with snow cover hanging on in Russia. The weekly export inspections remain fairly soft at 340,082 metric tons. On the March Kansas City chart support is the 10-day at $4.69 with major support at the $4.52 1/4 contract low. Resistance is at $4.76 50-day moving average which we are testing 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.