DTN Midday Grain Comments 01/25 11:30

DTN Midday Grain Comments 01/25 11:30 Grain Trade Mixed at Midday Corn is slightly higher at midday, soybeans and wheat slightly weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 130; March futures moved above 20,000 for the first time today. The interest rate products are lower. The dollar index is 25 points lower. Energies are mixed with crude up $0.10. Livestock trade is narrowly mixed. Precious metals are lower with gold down $13. CORN Corn trade is 2 cents higher at midday in quiet trade; the range is less than a nickel with trade firming off the lows since the day open. Lower trade overnight was noted as follow-through selling due to the turn-a-round Tuesday action. Basis has remained fairly flat but is expected to firm if futures keep a bearish tone following the nice rally last week into Monday night. Ethanol production was off 3000 barrels per day, while stocks were up 600,000 as gasoline demand was down 4.7%. This has ethanol slightly lower; the big retreat in production margins since the start of the year is expected to keep weekly production slipping slightly as we move into February. The USDA announced 141,224 metric tons of corn sold to unknown; the bull argument needs fresh friendly news. South American weather is still noted as concerning but overall production is still viewed as normal or a normal weather year in South America. On the March corn chart support is at the 20-day moving average at $3.60, resistance is at the 200-day at $3.69 3/4. SOYBEANS Soybean trade is 2 cents lower at midday, which has us in the middle of a dime trading range. Meal is $1 lower, and bean oil is 5 to 15 points lower. Trade will continue to watch the South American weather forecasts with follow up rains needed in the dry areas of Argentina. The extended forecast is remaining fairly dry which has helped support beans on some chart weakness this morning. Early harvest will continue to progress in Brazil. Basis has softened with the storm potentially slowing movement in the near term to boost basis moving forward. On the March soybean chart support is at the 10-day and highest major moving average at $10.55; resistance is at the $10.80 six-month high. WHEAT Wheat trade is mixed at midday with Minneapolis a penny higher, and the winter wheat contracts down 1-4 cents. Wheat trade is continuing to grind along and find a trading range off our recent highs. Weather looks drier for the western plains but has seen some recent moisture. The dollar continues to hold above 100 on the index but is still working down from the post-election rally. This has some optimistic exports will improve. The Minneapolis contract remains more dynamic and has the most room to correct; it has next support at the 20-day moving average at $5.60 on the March contract, which could encourage more selling today if it fails to hold. The March Kansas City $4.34 20-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.