DTN Midday Grain Comments 01/28 11:33

DTN Midday Grain Comments 01/28 11:33 All Grains Lower at Midday Trade is lower across the board led by soybeans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are mixed with the Dow futures down 5 points. The interest rate products are mixed today. The dollar index is 40 points lower. Energies are higher with crude up $0.80. Livestock trade is mixed. Precious metals are lower with gold down $1. CORN Corn trade is 3 to 4 cents lower at midday with trade following the weakness in soybeans. There has been some commercial support on weakness this morning. The ethanol margins remain under pressure but have mostly stabilized in recent days, with blender margins boosted by flat to lower ethanol futures and firmer unleaded futures. Russia is discussing export duties on feed grains. Export business is expected to remain behind the needed pace to meet the current USDA goal with exports delayed until Friday because of the East Coast blizzard. On the March chart, the 50-day moving average is support at $3.67 which we have edged below, 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 9 to 11 cents lower at midday after the announcement of China cancelling 365,000 metric tons of soybeans, with meal $4.50 to $5.50 lower and oil is 10 to 20 points lower. South American weather continues to show some areas of stress but the overall outlook lacks major threats. Early harvest continues to be variable in Brazil. Exports are delayed because of the storm. On the March soybean chart the 20-day at $8.72 is support which we are testing at midday. Resistance is at the $8.88 January high. WHEAT Wheat trade is 1 to 5 cents lower at midday following the lead of the row crops. Demand concerns will continue to limit strength on short covering, along with limited weather concerns at the moment. The chart turned down today with March KC closing below the 20-day, if we cannot close higher today then pressure could occur into the weekend. 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 at the 20-day moving average at $4.69 was violated so key longer term support to note is the contract low at $4.51 3/4. Resistance above that is at the $4.81 3/4 January high with major resistance at the $4.91 100-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.