DTN Midday Grain Comments 01/20 11:51

DTN Midday Grain Comments 01/20 11:51 Grains Mixed at Midday There is again mixed midday strength, but today corn is inching to new 6-month highs at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 69. The interest rate products are lower. The dollar index is 11 points lower. Energies are higher with crude up $1.10. Livestock trade is lower. Precious metals are higher with gold up $2. CORN Corn trade at new highs for the move at midday with futures up 2 to 3 cents; it is still a slow day with a daily range under a nickel. It is likely going to get volatile before the day is over. Buy stops are above our midday prices with the potential for a more major trend shift. No granted many traders question the need for an upside move, but trade volume will determine where we go this afternoon and early next week, not ideas. Obviously Argentine weather forecasts remain on the forefront of market news getting paid attention to. There is reason for concern therefore the market does not appear to want to give back gains today. The weekly export sales number was also supportive this morning at 1.367 million tons. President Trump is speaking to the nation here at midday which appears to be friendly for corn. On the March corn chart support is at the $3.60 10-day moving average with resistance at the $3.70 200-day moving average. SOYBEANS Soybean trade is 1 cent higher, meal is up $1.50 and bean oil is down 10-15 points at midday. Overnight up to midday trade has been mostly lower, down as much as a dime at one time, so momentum is firm at midday. The weakness overnight was noted as light long profit taking again. The weekly export sales were good at 979,600 tons for beans, 269,800 tons of meal and 41,500 tons of soybean oil. Beans have not challenged the new high for the move printed this week but we have not given back much of the added weather premium added this week. That favors a friendly weekly close which gives the risk of short covering this afternoon. Weather forecasts and weekend weather will give us direction next week. On the March soybean chart support is at the 10-day and highest major moving average at $10.37; resistance is at the $10.80 6-month high. The next level of resistance would be the $11 area; then the March futures high last June at $11.35. WHEAT Wheat trade is 1 to 7 lower at midday with Minneapolis seeing the most pressure due to noted long profit taking. The weekly export sales were poor at 242,500 tons keeping demand news bearish for wheat. The Minneapolis contract remains more dynamic and has the most room to correct. The March KC $4.43 10-day moving average was support which the futures dropped down to yesterday then below it today so this is now resistance then the $4.58 200-day. Support is a the $4.28 100-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.