DTN Midday Grain Comments 01/26 11:12

DTN Midday Grain Comments 01/26 11:12 Grains Mixed at Midday Row crops are softer at midday, with wheat testing the upper end of the range. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are higher at midday with the Dow futures up 90 points. The interest rate products are higher. The dollar index is 30 lower. Energies are higher with crude up 0.50. Livestock trade is higher led by cattle. Precious metals are lower with gold 12.00 higher. CORN Corn trade is flat to a penny lower at midday with trade chopping along at the upper end of the range. Ethanol margins remain steady with energies and corn both firming, but ethanol futures remain near the low end of the range, with softer trade this morning. Basis is expected to remain mostly steady to lower with plenty of cash movement today adding some near term weakness. The USDA announced 125,000 metric tons of corn to unknown. The weekly export sales were strong again at 1.45 million metric tons. On the March chart support is 10,20, and 50-day moving averages at $3.51-52 and resistance at the 100-day at $3.58. SOYBEANS Soybean trade is 2 to 6 cents lower at midday with action hanging in the upper end of the range with trade running into selling on strength at the upper end of the range. Meal is $4 to $5 lower and bean oil is 25 to 35 points higher. South American weather looks to continue the recent pattern with more improvement expected in the north, and a drier south, but some improvement in Argentina. The Brazilian real rally has slowed this morning. Basis and carry remains mostly sideways. Export sales were disappointing at 616,300 metric tons, 223,100 metric tons of meal, and 11,800 of oil. On the March, support is the 100-day at $9.87 which is the highest major moving average with the 50-day at $9.83 below that, with the $10.00-$10.02 area resistance with a test of $10.02 this morning. WHEAT Wheat trade is 2 to 7 cents higher at midday with trade moving back towards another test of upside resistance. The Plains look as if they will stay mostly dry in the near term, but a slight uptick in moisture is possible. Warmer weather should be the rule in the near term, but moisture will likely remain short in the near term for much of the plains with some potential improvement in the second week. The dollar is just below 89 on the index, this should continue to boost export competitiveness coming forward. The weekly sales were ok at 427,700 metric tons. On the March Kansas City contract, chart support is the 10, 20, and 50 day moving averages at $4.30 with resistance the 100-day at $4.41. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.