DTN Midday Grain Comments 01/29 11:31

DTN Midday Grain Comments 01/29 11:31 Grains Higher at Midday Trade is higher across the board led by soybeans which are gaining back some of the losses experienced on Thursday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are higher with the Dow futures up 200 points. The interest rate products are lower today. The dollar index is 125 points higher. Energies are mixed with crude down $0.05. Livestock trade is mixed. Precious metals are mixed with gold up $1.50. CORN Corn trade is 3 to 5 cents higher at midday with trade finding good buying ahead of the end of the month. 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. Export business is expected to remain behind the needed pace to meet the current USDA goal but the weekly sales number showed some lift at 817,000 metric tons. On the March chart the 50-day moving average is the key area ending the month just below the market at $3.66, then the 20-day at $3.61. Further 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 3 to 6 cents higher at midday with trade finding commercial buying to support trade after the setback yesterday. Meal is $2.50 to $3.50 higher, 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, and there storms that disrupt southern Brazil port operations in the near term. Exports were OK at 647,800 metric tons of soybeans, 200,800 metric tons of meal, and 9,100 of oil. On the March soybean chart the 20-day at $8.72 is resistance after sliding through that area yesterday, and we are back above it at midday, while support is the recent low at $8.65. WHEAT Wheat trade is flat to 3 cents higher at midday with trade shaking off the sharply stronger dollar so far. Demand concerns will continue to limit strength on short covering, along with limited weather concerns at the moment, with more moisture expected from the pending winter storm for the middle of the country. The chart turned down today with March Kansas City closing below the 20-day, but some month end short covering could surface today. Export sales were inline with recent week at 294,200 metric tons. On the March Kansas City chart support at the 20-day moving average at $4.68 was violated becoming nearby resistance and key longer-term support to note is the contract low at $4.51 3/4. 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.