DTN Midday Grain Comments 01/21 11:28

DTN Midday Grain Comments 01/21 11:28 Grain Trade Trending Higher at Midday Outside markets are higher at midday giving grains support. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 140 points. The interest rate products are higher. The dollar index is 26 points higher. Energies are higher with crude up 0.70. Livestock trade is stronger led by cattle. Precious metals are mixed with gold down $11. CORN Corn trade is steady to a penny higher at midday with trade continuing to grind out mild gains with support from the commercial side of the market. The weekly ethanol production report showed a 20,000 barrel per day drop in production and a 2.8% rise in stocks. The South American weather forecast does not have any major threats for corn to justify a bull market off of weather here, but has trended a shade drier for corn ground. On the March chart we have moved above the 50-day at $3.67, and closing above that area today could trigger more chart buying. So the 100-day up at $3.82 is major resistance; if we can close above the 50-day again today, the market may want to go test that area. SOYBEANS Soybean trade is 7 to 11 cents higher at midday with good commercial demand leading trade, with meal $3 to $4 higher and oil 25 to 35 points higher. The turmoil in the Chinese markets will continue to loom over forward soybean demand, but a calmer market could lead to more short covering in a hurry. The forecast for South America continues with the drier nearby weather, and improved extended forecast, so we have a fairly neutral weather outlook with some lingering concerns. On the March soybean chart the 10-day at $8.74 is support then the 20-day at $8.70. The 100-day at $8.85 is major resistance at this juncture, and we were able to test that area this morning. The market has consolidate this week illustrated by the close major moving averages; this likely has us set up for a bigger move with funds either exiting shorts on a move above resistance, or piling on more if we break looking for South American harvest pressure concerns to support the bear argument. WHEAT Wheat trade is 6 to 9 cents higher across the three contracts with wheat trade following the row crops higher. The strong dollar will continue to limit exports, but the weak ruble triggering further inflation may lead to export restrictions. Egypt pulled their scheduled tender this morning with the bounce in the markets. The weather forecasts lacks significant near term cold threats in Russia and the US with snow cover hanging on in Russia. On the March Kansas City chart support is the $4.52 1/4 contract low. Resistance is at the $4.75 50-day moving average, which are just below. 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.