DTN Midday Grain Comments 01/19 11:24

DTN Midday Grain Comments 01/19 11:24 Grains Narrowly Mixed at Midday Narrowly mixed slow midday trade is seen at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 20. The interest rate products are lower. The dollar index is 11 points higher. Energies are mixed with unleaded down a penny and crude up $0.40. Livestock trade is mostly higher. Precious metals are lower with gold down $12. CORN Corn trade is a penny higher at midday in slow trade. Ethanol is down 2 cents at midday with another disappointing January day for ethanol production margins. Ethanol stocks were up 5.54% on the weekly EIA estimates with production up 0.48% with gasoline demand estimated 4.73% lower. DDG prices have fallen as well albeit they may see some support due to the spike in meal this past week. This is limiting upside in corn today, and in the bigger picture. Argentine weather continues to be the noted supportive factor with highs in the 90s and low 100s the next 10 days with limited moisture in the forecasts. Commodity funds have been adding length this week, if it continues there may be short covering late today into Friday. There is plenty of hedge selling interest on higher prices which has kept corn from sharp upside moves with funds adding length this week. The weekly export sales report is delayed until tomorrow. On the March corn chart support is at the $3.60 10-day moving average then the 20-day at $3.55. Resistance is at the $3.69 6-month high followed by the $3.70 200-day moving average. The morning high has been $3.67. SOYBEANS Soybean trade is a penny lower this has us near the daily highs after trading 8 lower. Meal is down $1 and bean oil is up 10 points. The weakness overnight was noted as light long profit taking, granite a change in the forecasts could quickly have futures crashing lower, but for now the weather news has not changed. There is concern and reason for weather premium. On the March soybean chart support is at the 10-day and highest major moving average at $10.34. The high printed yesterday at $10.80 is resistance which was a new 6-month high. The next level of resistance would be the $11 area; then the March futures high last June at $11.35. The chart still looks like a potential double top here even though we surpassed the late November high by about a nickel it is still close. If the weather forecast remains supportive, and fund buying continues like it has this week, a short squeeze by market logs may occur. Brazilian weather is more favorable, so there is a favorable weather picture as well. WHEAT Wheat trade is again mixed with Minneapolis up a nickel at midday, Chicago down 4 and Kansas City down 5 cents. This market has the ability to be volatile on any day over the next several weeks following the move this month. Activity today is moderate. The Minneapolis contract has been more dynamic; there has been a 50 cent rally just this month, and the high on Tuesday was a full dollar above the low printed at the end of August. So we've priced-in some recovery from oversold conditions and a few spring wheat production problems. But world supplies still remain historically very large. The March Kansas City chart support is at the $4.42 10-day moving average, resistance is at the $4.59 200-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.