DTN Midday Grain Comments 01/31 11:12

DTN Midday Grain Comments 01/31 11:12 All Grains Trending Lower at Midday Soybeans lead trade lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 125 points. The interest rate products are higher. The dollar index is 25 lower. Energies are mostly lower with crude down 0.20. Livestock trade is mostly lower. Precious metals are higher with gold 6.00 higher. CORN Corn trade is a penny lower in quiet midday trade, with buyers taking a breather ahead of the Fed Decision on rates this afternoon. The weekly ethanol report showed production down 2.07%, stocks were down 3.23%, with ethanol futures edging higher after the report. Basis is expected to remain mostly steady with some locations slipping with increased cash movement on the strength. Unknown bought 145,000 metric tons of corn today continuing the recent trend of improved exports. On the March chart support is now the 100-day at $3.57 with the 10-, 20-, and 50-day below at $3.52, with the 200-day moving average at $3.76 the highest moving average resistance after the $3.62 1/4 high printed yesterday. SOYBEANS Soybean trade is 5 to 9 cents lower at midday with light profit taking bringing the market down closer to nearby chart support at midday. Meal is $2 to $3 lower and oil is flat to 10 points lower. South American weather looks to continue the recent pattern with excessive rain near the early harvesting areas in Brazil, and dryness for the bulk of Argentina. The Brazilian real remains at the upper end of the range, helping US export values, although the daily export wire has been quiet. On the March, support is the 100-day at $9.88 which is the highest major moving average with the 50-day at $9.83 below that, with the $10.00-$10.05 area resistance. WHEAT Wheat trade is 2 to 8 cents lower with the Minneapolis and KC wheat showing the most strength so far after the recent sharp gains for the winter wheat contracts s with spread action adjusting. The plains look like they stay mostly dry in the near term, with conditions for this time of year correlating with 2006, and 2013, both years that saw yields well below trend. The dollar is just below 89 on the index, with the Fed Decision on rates today potentially adding some strength later on in the day. Jordan canceled their nearby tenders amid rising values yesterday. On the March KC contract, chart support is gap left yesterday at $4.57, with the 200-day the next level of resistance at $4.73. 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.