DTN Midday Grain Comments 01/27 11:31

DTN Midday Grain Comments 01/27 11:31 Wheat, Corn Lower at Midday Wheat is sharply lower at midday, row crops near unchanged. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow futures down 55 points. The interest rate products are higher and near contract and historical highs. The dollar index is 2 points higher. Energies are mixed with crude up $.30. Livestock trade is higher. Precious metals are mixed with gold down $5. CORN Corn trade is 1 to 2 lower at midday with two sided trade so far today. The Fed comments this afternoon could push the dollar higher if it appears further interest rate hikes are on the near term horizon. 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, and that will be watched the balance of the week. The weekly ethanol report showed a 2.24% decrease in production,a 2.3% drop in stocks, and a 1.5% decrease in gasoline demand, ethanol futures were steady to higher post report. Export business is expected to remain behind the needed pace in the near term, limiting fundamental support. 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 flat to 2 cents higher in quiet midday trade, with commercial buying fading a bit as the trade moves back to carry from trading an inverse early in the week. Meal is flat to $1 higher, and oil is 20 to 30 points higher. 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 so far, with improved nearby rains for key areas, although the extended forecast returns some dryness. On the March soybean chart the 20-day at $8.71 is support with the 100-day at $8.83 1/2 resistance. We tested the 100-day three days last week but not yet this week. WHEAT Wheat trade is 7 to 11 lower at midday with selling returning on renewed demand concerns and the lack of supportive news to encourage short covering. The Fed decision today could trigger a bigger run of the dollar which is also encouraging selling. 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 still holding the recent trendline support at midday which is an encouraging factor. The ongoing Russian currency issues will have to be watched as well as that could trigger export restrictions down the road. 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 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.