DTN Midday Grain Comments 01/20 11:40

DTN Midday Grain Comments 01/20 11:40 Soybeans, Wheat Lower at Midday Trade is mostly lower at midday with big outside market pressure. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are sharply lower with the Dow futures down 380 points. The interest rate products are lower. The dollar index is 7 points higher. Energies are lower with crude down 1.55; February futures hit a $26.81 a barrel low this morning. Livestock trade is lower with cattle off sharply. Precious metals are mixed with gold up $14. CORN Corn trade is fractionally higher at midday with two-sided trade seen early on but we could not get above Tuesday's high. Corn trade has been slow with a narrow range of 4 cents despite the outside market issues. The Dow futures are down 500 points at midday and crude is down nearly $2 sitting below $28 on the March contract. Ethanol margins remain under pressure with producer and blender margins shrinking from the rising corn and ethanol values. The US has found more export business lately which has helped to support trade with the USDA announcing 243,100 metric tons of corn sold to Mexico. The South American weather forecast does not have any major threats for corn in the near term. On March futures we are above the 20-day which is now nearby support at $3.60 then the 10-day at $3.58 followed by the contract low at $3.48 1/2. Notable chart resistance is the 50-day at $3.68 which we are just below, next resistance is the two-month high at $3.82. SOYBEANS Soybean trade is 7 to 10 cents lower at midday with trade struggling with continued world economic concerns especially for China, while meal is $1 to $2 lower, and oil is 30 to 40 points higher. The forecast for South America continues with the drier nearby weather, and improved extended forecast. Export business has remained fairly steady to start the new year with shipments keeping a good pace, but future demand concerns will continue to loom over the market. On the March soybean chart the 10-day at $8.73 is support then the 10-day at $8.72. The 100-day at $8.86 is major resistance at this juncture, and we have not been able to hold trade above that area with support being challenged this morning. WHEAT Wheat trade is 3 to 5 cents lower across the three contracts at midday following the lead of the row crops. The dollar is stronger this morning which should continue to limit upside. The ruble has made new lows overnight keeping Russian-origin wheat cheaper on the export market, but triggering domestic inflation. The weather forecasts lacks significant near term cold threats in Russia and the U.S. with snow cover hanging on in Russia. On the March Kansas City chart support is the 20-day at $4.68 with major support at the $4.52 1/4 contract low. Resistance is at $4.76 50-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.