DTN Midday Grain Comments 01/13 11:34

DTN Midday Grain Comments 01/13 11:34 Grains Mixed at Midday Chart buying has beans printing new highs for the move at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 40. The interest rate products are lower. The dollar index is 11 points lower. Energies are lower with crude down $0.40. Livestock trade is higher. Precious metals lower with gold down $5. CORN Corn trade is 2 cents lower in slow trade; the higher soybean trade is limiting downside in corn. The market is further digesting the USDA numbers seen yesterday and sideways trade has been the result. The reports did not change much for the corn market picture; most believe sideways action is likely the rest of the month. The USDA January USDA World Agricultural Supply and Demand Estimates ("WASDE") delivered a lower than expected carryover at 2.355 billion bushels versus 2.396 billion bushels expected. This is still the largest carryover in modern history. A yield reduction from 175.3 to 174.6 bushels per acre was the main item of change yesterday. The poor ethanol margins should limit upside in corn near term. On the March corn chart support is at the $3.51 100-day moving average with resistance at the $3.62 3/4 January high. The trading range through midday has only been 4 cents, so unless soybeans give some bigger spillover direction most traders think corn will be quiet this afternoon. SOYBEANS Soybean trade is 4 to 7 higher at midday and near the daily highs; meal is up $7 which is giving beans the most support due to short covering. Soybean oil is down 30 points. The soybean market received some friendly news versus expectations from the USDA and now have positive chart items to finish our the week. The quick 50 cent run up from our one-week lows have many margin calls generated on short positions. The USDA yield reduction to 52.1 bushels per acre versus 52.5 on the last USDA report lead to a friendly carryover number on the WASDE down to 420 million bushels versus 468 million expected. The global carryover was at 82.3 million metric tons versus 82.5 expected. Some weather uncertainty due to too much moisture in Argentina is letting futures run up here at midday ahead of the long holiday weekend. On the March soybean chart support is at the 20-day and highest major moving average at $10.17, with nearby resistance at the $10.50 upper Bollinger Band which we are testing at midday. WHEAT Wheat trade is mixed with Chicago down 2 cents, Kansas City up 2 cents and Minneapolis a nickel higher at midday. Fridays are trend days so trend buying and spillover support from beans is noted supporting wheat at midday. The USDA numbers were mixed yesterday with friendly winter wheat plantings but bigger carryover estimates. Meaning even with some lower planted acres, heavy historical supplies will remain. Some major world production areas need to have weather hurt production to change our heavy supply side fundamental picture for wheat. March Kansas City support is at the $4.29 100-day moving average, resistance is at the $4.60 200-day moving average. 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.