DTN Midday Grain Comments 01/02 11:40

DTN Midday Grain Comments 01/02 11:40 Wheat, Beans Higher at Midday Soybeans lead midday trade higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed today with the Dow down 70. The interest rate products are weaker. The dollar index is 60 higher. Energies are firmer with crude up $2.30. Livestock trade is mixed. Precious metals are mixed with gold up 1.50. CORN Corn trade is mixed at midday after trading 2 cents higher with trade finding light buying to start the year, which has paused. Corn has been testing support the past week, and bouncing a little. Most expect support in lower territory today, and feel we would need to see a close below support for a few days for the light December correction to turn into more. Corn basis looks to be flat with improved weather allowing for better movement. The ethanol margins remain poor with ethanol futures mixed this morning keeping pressure on blender margins with the weak energy complex. On the March chart the 20-, 50-, and 100-day moving average area of $3.79-$3.80 is resistance with support at the area of our low this past week, $3.72 1/2, and the lower Bollinger Band at $3.72. SOYBEANS Soybean trade is 10 to 12 cents higher with trade optimism and Brazilian weather supporting the market. Meal is $1.50 to $2.50 higher, and oil is 35 to 45 points higher. South America remains in the recent weather pattern with some dry pockets, and the start of early harvest in Brazil expanding. Basis will provide signals on the quantity of nearby cash business getting done with flat trade through the holidays and the roll to the March contract. South American currencies remain rangebound at the lower end of the recent trade. March support is the 100-day at $8.90, with trade moving through the 50-day at $8.99 overnight before fading, and the 20-day at $9.12 the next round up. WHEAT Wheat trade is 5 to 6 cents higher with trade still working to build a crossover on the charts. The dollar is carving out more of a range as well with the strength today pulling us off the lower end of the range. Australian harvest will continue in the near term, while Argentina battles quality issues, forcing Brazil to look elsewhere for some imports. North American winter wheat should have snow cover on the western Plains, protecting late emerging wheat with the late-week warm up likely to remove cover. Russia has continued to export aggressively with domestic prices rising. On the March Kansas City chart, support is at the fresh low at $4.87 with the 20-day at $5.06 above the market as resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.