DTN Midday Grain Comments 01/24 11:08

DTN Midday Grain Comments 01/24 11:08 Wheat Trading Mixed at Midday Trade is mostly lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 55. The interest rate products are lower. The dollar index is slightly lower. Energies are higher with crude up $0.60. Livestock trade is firmer. Precious metals are mixed with gold down $3.30. CORN Corn trade is 3 to 6 cents lower at midday with trade hitting $3.71 overnight but not accelerating with stops from there, before reversing this morning. Basis has remained fairly flat in the near term with the rally likely pushing enough bushels onto the market for now. Ethanol margins remain solidly positive within in the recent range for now but ethanol futures have eroded a bit more. The USDA announced 125,000 metric tons of corn sold to unknown. On the March corn chart support is at the $3.64 10-day moving average with resistance at the $3.70 200-day moving average which we failed at this morning. The 40% retracement of the June high to late August low is $3.76 1/4. The high overnight was a new six-month high; it is 46 cents above the contract low and still 82 cents below the contract high printed in June. SOYBEANS Soybean trade is 2 to 6 cents lower at midday after trade failed to hold the overnight gains. Meal is $2 to $3 lower, and oil is 20 to 30 points higher. Trade will continue to watch the weather forecast with follow up rains needed in the dry areas of Argentina with the extended forecast looking better than the near term forecast. Early harvest will continue to progress in South America. The USDA announced 163,000 metric tons sold to unknown, and 112,000 sold to Mexico. On the March soybean chart support is at the 10-day and highest major moving average at $10.51; 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 mixed at midday with trade continuing to grind along with Minneapolis showing the most strength this morning. Weather looks drier for the western Plains in the near term, while the dollar continues to hold above 100 on the index, with mixed action this morning. The Minneapolis contract remains more dynamic and has the most room to correct; it failed to hold support at the 10-day and highest major moving average at $5.67 on the March contract, which could encourage more selling today if not seeing more strength towards the close. The March Minneapolis high printed on last week was exactly $1 above the contract low printed just over 4 months ago. The March Kansas City $4.44 10-day moving average being tested this morning; notable resistance is the $4.58 200-day. Support is at the $4.28 100-day moving average. 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.