DTN Midday Grain Comments 01/26 11:26

DTN Midday Grain Comments 01/26 11:26 Wheat at One-Week High; Corn, Soybeans Mixed at Midday Wheat is at a one-week high at midday; corn and soybean trade is slow and mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 225 points. The interest rate products are higher and near contract and historical highs. The dollar index is 21 points lower. Energies are higher with crude up $1.10. Livestock trade is mixed. Precious metals are higher with gold up $13. CORN Corn trade is fractionally higher at midday; the overnight to midday range has been mixed within a nickel range, illustrating limited fresh news today. The outside markets are lightly supportive, and the chart trend is higher with a leaning toward sideways. So we still have the positive chart item which appears to be the best friendly to bullish item to talk about if we want corn to keep moving higher. Corn did trade to a new high for the move Monday, which was a new one-month high, but we have not taken that out today. The large fund net short covering would be something that could push futures higher as we head into February due to a higher monthly close. Fundamentally, the bullish items are just not there yet. The weekly export inspections were just OK Monday at 599,765 tons and not up around the 1 million ton area that would be a consistent item needed to give corn a friendly fundamental story. As long as oil and gas prices are low, a rise in corn will test attitudes in ethanol facilities toward slowing production, slowing corn usage. For today at this juncture, crude is up over a buck and unleaded over a penny, helping corn and ethanol futures see fractional midday positive trade. 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 1 to 3 lower at midday, meal is off $2.50 and bean oil is up 30. Soybean trade was firm Monday and tried to break out to the upside, but we continue to not see the buying interest on rallies this month, which provides us a sideways chart pattern. The weekly export inspections were good for beans Monday morning at 1,197,226 tons, so the positive fundamental export story continues to support the bulls in the soy complex. But comfortable domestic and global supplies continue to keep the buyers away on rallies. No major South American weather issues continue to be the case, illustrated by our mixed futures trade today. On the March soybean chart, the 20-day at $8.70 is support with the 100-day at $8.83 1/2 resistance. We tested the 100-day three days last week but not today. WHEAT Wheat trade is 3 to 5 higher in slow midday trade. The dollar is lightly lower again, which has supported wheat yesterday into today. The weekly export inspections were low to very low yesterday at 187,903 tons, which has limited upside. The lack of a weather issue domestically or globally to seriously disrupt production will continue to hinder rally hopes in wheat. But on the chart, we are above the 20-day and 50-day moving averages, which should have chart traders thinking positive thoughts. On the March KC 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 with major resistance at the $4.92 100-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.