DTN Midday Grain Comments 01/25 11:25

DTN Midday Grain Comments 01/25 11:25 Grains Mixed at Midday Early gains have given way to mostly lower midday trade; momentum is flat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the DOW futures down 80 points. The interest rate products are higher. The dollar index is 20 points lower. Energies are weak with crude off 1.60. Livestock trade is mixed with cattle lower and hogs higher. Precious metals are higher with gold up $11. CORN Corn trade is fractionally lower at midday, the dollar is lower with crude and the stock market also lower providing mixed outside market direction. Corn did trade to a new high for the move earlier this morning and a new 1-month high with March corn reaching $3.72 1/2 but no big follow-through buying was found. The weekly export inspections were just ok at 599,765 tons which appeared to turn futures lower. The strong weekly sales number on Friday at 1.16 million metric tons was a positive start that if sustained (if we could see consistent weekly sales over 1 million tons) would be a friendly item for corn to help us confirm a low. On the March chart the 50-day moving average is support at $3.67, then the 20-day at $3.60. Resistance is up at the $3.82 level where we find the two-month high and the 100-day moving average. The 200-day at $3.90 would be the next upside level of resistance. SOYBEANS Soybean trade is 2 to 3 cents lower at midday with mixed trade the theme for row crops. Meal is up $1.50 and bean oil is down 40 cents; this is a product correction following the moves last week. The weekly net closes last week on the March contracts were $2 lower on meal but 85 points better on bean oil. March crude oil finished over $2.50 higher on Friday which took it around $5 above the 12-year low printed early last week. That was supportive for bean oil last week, but with crude down this morning it appears to have eased some of the strength in bean oil, as well as beans and corn. No major changes over the weekend in South American weather illustrated by our mixed trade. The weekly export inspections were good for beans at 1,197,226 tons which is limiting downside at midday. On the March soybean chart the 10-day at $8.75 is support then the 20-day at $8.71. The 100-day at $8.83 1/2 is major resistance at this juncture. We tested the 100-day three days last week. WHEAT Wheat trade is flat to 3 cents higher across the three contracts at midday. The higher trade was noted due to the weaker dollar and light short profit taking but we are off the daily highs by a nickel so midday momentum is flat. The weekly export inspections were low at 187,903 tons which helped pull wheat down from the firmer early momentum we had in place. On the March Kansas City chart support is the 20-day moving average at $4.68, with the longer term low at $4.52 below that. Resistance is at the $4.81 1/2 January high. 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.