DTN Midday Grain Comments 01/03 11:26

DTN Midday Grain Comments 01/03 11:26 All Grains Trending Higher at Midday Wheat leads corn and beans higher at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker today with the Dow down 570. The interest rate products are weaker. The dollar index is 60 lower. Energies are mixed with crude down $0.20. Livestock trade is mixed. Precious metals are mixed with gold up $7. CORN Corn trade is flat to 1 cent higher at midday with trade still working to slowly build some type of upward momentum. Corn has been testing support the past week, and bouncing a little with positive finishes needed to confirm the turnover. Corn basis looks to be flat with improved weather allowing for better movement this week. The ethanol margins remain poor with ethanol futures edging higher to keep pace with higher corn trade, but this is 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 2 to 3 cents higher with light buying on weather concerns and hopes for trade progress. Meal is $1.50 to $2.50 higher with oil 5 to 15 points higher. South America remains in the recent weather pattern with some dry pockets, and the start of early harvest in Brazil expanding along with record shipments from Brazil for this time frame. 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 and little action seen this week. South American currencies have moved back to the upper end of the range. March support is the 50-day at $8.90, and the 20-day at $9.11 the next round up which we are just below at midday. WHEAT Wheat trade is 3 to 9 cents higher with trade still working to build a crossover on the charts with a good close today needed to accelerate buying with the higher-protein classes leading us today. The dollar is carving out more of a range as well with trade easily giving back yesterday's gains. Australian harvest will continue in the near term, along with Argentina. 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 $5.05 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.