DTN Midday Grain Comments 01/03 11:02

DTN Midday Grain Comments 01/03 11:02 Wheat, Corn Trading Higher at Midday Corn and wheat are firmer at midday, soybeans are weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 60. The interest rate products are lower. The dollar index is 90 higher. Energies are lower with crude down 0.40. Livestock is mostly higher. Precious metals are mixed with gold up 8.80. CORN Corn trade is 5 to 6 cents higher at midday which has trade near the daily highs. Ethanol margins remain positive but have narrowed; at midday ethanol is down close to a penny with corn higher. South American weather looks to be mostly the same for corn this week with a few areas of concern. The strength in corn today again appears to be some buying corn and selling soybean spread activity. The weekly export inspections were ok for the short week at 636,684 metric tons. On the March chart trade has edged above the 10, 20, and 50-day which are in the $3.53-3.55 area, which is now support then the $3.45 1/2, the 3-week low, then $3.41 3/4, the three month low. Resistance is the recent high at $3.64. SOYBEANS Soybean trade is 3 to 6 cents lower at midday with trade surrendering the initial overnight gains here at midday. Meal is $3 lower and oil is 20 points higher. Early Brazilian harvest will continue to with the bulk of the crop starting to enter the key weather season, which will drive us forecast to forecast. The weekly export inspections were strong at 1.578 million metric tons. Sales should start to drop off with more world business booking out of South America in the first quarter of 2017. On the March chart support is the $9.95 100-day moving average, after we slipped just below the 200-day at $10.05. Resistance is at the $10.12 10-day then the $10.29 20-day. WHEAT Wheat trade is 2 to 4 cents higher across the three contracts at midday with support from corn and better demand. The dollar spiked substantially higher to open 2017 at a new high for the move, but has set back as of midday offering light support to wheat. Weather for the winter wheat areas looks fairly non-eventful for the wheat belt, but some dryness has started to build again with the mild temps in the west, and a cold spell this week could cause some damage. The southern hemisphere harvest should continue to move along with the end in sight. The weekly export inspections were good for a short week at 395,417 metric tons. On the Kansas City March chart we are just above the 20-day at $4.13, and the 10-day at $4.12. The next support level is at the $3.99 low. Resistance is the 50-day at $4.21, which we are challenging at midday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow Fiala on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.