DTN Midday Grain Comments 02/01 11:12

DTN Midday Grain Comments 02/01 11:12 All Grains Higher at Midday Trade is modestly higher at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are narrowly mixed at midday. The interest rate products are lower. The dollar index is 40 points higher. Energies are higher with crude up $0.85. Livestock trade is narrowly mixed. Precious metals are lower with gold down $6.90. CORN Corn trade is 3 cents higher at midday wit trade at the high side of a nickel trading range. There is a slow but firm midday market tone. The weekly ethanol report showed production 0.95% higher, and stocks 0.65% higher as gasoline demand continues to struggle although it was 3.37% higher on the week. I suppose this was supportive for corn due to the usage, but negative due to the production margin damage getting done here at midday with ethanol futures down 3 cents a gallon and corn up 3 cents a bushel. The February USDA monthly report is due out at the end of next week; until then news is limited with mixed South American weather views. On the March corn chart support is at the $3.57 50-day then the $3.52 100-day moving average with resistance at the $3.69 200-day. The move back above the $3.62 20-day at midday gives more of a sideways chart picture. SOYBEANS Soybean trade is 6 cents higher at midday with trade firming back off the lows with weather still keeping a lid on upside. Meal is $1 lower and bean oil is 15 to 25 points higher. Better rain forecasts for the dry areas of Argentina at the end of the week eased weather concerns in the near term. Wetter weather is expected to stick around in Brazil with early harvest ongoing. Some are giving a slightly positive twist on the weather, others negative. The Brazilian Real has rallied further which is slowing farmer selling there. The USDA announced 236,700 metric tons of soybeans sold to unknown. November soybeans have held above $10 this week keeping soybeans in the lead for acres. On the March soybean chart futures slipped below the $10.38 20-day Monday. This is now nearby notable resistance then the $10.48 10-day, support is at the $10.15 200-day. WHEAT Wheat trade is 2 to 6 cents higher at midday with trade finding support from the strong finish yesterday and better action in the row crop trade. The dollar index broke below the 100 level, which should encourage some buying if sustained, with the index back to 99.80 this morning. The western belt is still shorter on near term moisture which will be watched closer as the wheat gets closer to coming out of dormancy with warmer than normal temperatures on deck for mid-February. The world export market has been quieter this week. On the March Kansas City contract support is at the $4.24 50-day and resistance is at the $4.37 20-day then the $4.41 10-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.