DTN Midday Grain Comments 01/04 11:35

DTN Midday Grain Comments 01/04 11:35 Soybeans Leads Trading Higher at Midday Grain trade is higher across the board at midday with outside market support and wet condition in Argentina. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow futures up 50. The interest rate products are mixed. The dollar index is 60 lower. Energies are higher with crude up 0.80, but ethanol is lower. Livestock is mixed. Precious metals are higher with gold up $3. CORN Corn trade is 3 cents higher at midday with follow-through buying and spillover support from beans and the outside markets. Ethanol margins remain okay, but this is not a great day with February ethanol down 2 cents and corn up. South American weather is keeping much of Brazil dry and Argentina wet which is preventing sellers in futures today. Beans are bouncing back today after seeing a new low for the move which has some chart buying around here at midday. On the March chart trade moved above the 10, 20, and 50-day yesterday which has brought in some chart buying; this areas is nearby support in the $3.53-3.55 area, then the $3.45 1/2, the three-week low. Resistance is the recent high at $3.64; trade is challenging the $3.60 area now with momentum higher. SOYBEANS Soybean trade is 12 to 18 cents higher at midday with trade moving off the fresh lows for the move overnight. Meal is up $5 and bean oil up 60 here at midday. So we have a little chart action to talk about; we dropped below nearby support, the $9.95 March 100-day moving average and lowest major moving average, picked up a few sell stops then rebounded. Now at midday the trade is talking about an outside day with a higher close which is a positive chart time. Futures are above yesterday's high and we saw a new 6-week low early, so the outside day trading range has already occurred. We just need a close above $10.12. N. Brazil is seeing the most concerning dryness, and flooding concerns are lingering in Argentina. On the March chart support is the 10-day at $10.10, then the 200-day at $10.06. Resistance is at the $10.22 50-day then the $10.27 20-day. WHEAT Wheat trade is 3 to 6 cents higher at midday with trade testing the upper end of the recent range due to spillover support from the row crops and the lower dollar. Weather for the winter wheat areas looks fairly non-eventful but some dryness has started to build concern plus the cold spell this week could cause some damage with little snow cover. The southern hemisphere harvest should continue to move along with the end in sight with plenty world supplies around to compete with the U.S. On the KC 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 again 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.