DTN Midday Grain Comments 01/07 12:05

DTN Midday Grain Comments 01/07 12:05 Grains Mixed at Midday Mixed slow action is seen at midday; corn has only seen a 2 1/4 cent trading range since the opening bell last night. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer today with the Dow up 200. The interest rate products are lower. The dollar index is 47 lower. Energies are mostly firmer with crude up $1.10. Livestock trade is mostly higher. Precious metals are mixed with gold up $3. CORN Corn trade has been narrowly mixed with midday trade a penny lower which has us at the daily lows. The market is watching outside markets and South American weather. Some bigger rain is expected in Argentina that will continue to create some lower production ideas due to too much moisture, but market bears argue it is good overall. Southern Brazil has been dry which market bulls should bring in buying this week, but market bears argue friendly items are priced-in and Brazil has seen some rain. Ethanol profitability remains the market bear's biggest argument. Crude is up a buck and the value of the dollar lower today giving outside market support but ethanol futures are only up a couple tenths of a penny. The government partial shutdown is expected to continue to limit news, including the monthly report this week. The weekly export inspections continue to come out, corn inspections were only 501,541 during the holiday week last week versus 952,881 the week before. On the March chart support is at the $3.80 20-day with resistance at the $3.87 3/4 December high then the 4-month high at $3.90 1/4. SOYBEANS Soybean trade is 2 to 3 higher at midday which has us in the middle of our 6-cent trading range. Trade is higher due to noted follow-through chart buying, outside market help, and the few South American weather concerns. Meal is up $3 at midday and soybean oil is down 5-10 points. South America weather items remain in the recent weather pattern with harvest going early amid heat and pockets of dryness in Brazil, and excessive rain potential in Argentina. The few weather problems should mean slightly lower production, but market bears argue this is not incredibly friendly weather especially with our comfortable domestic and global stocks. Forecasts are being monitored closely. The weekly export inspections were only 673,172 tons. March chart support is at the 20-day at $9.11 with resistance at the $9.31 200-day then the upper Bollinger band at $9.39. WHEAT Wheat trade is 1 to 3 cents lower with limited follow-through buying that has been disappointing to wheat bulls. The wheat weekly export inspections were only 260,134 tons. Outside markets are lightly supportive at midday but the upside momentum from last week just has not held which seems to have the tone weak at midday. Australian harvest will continue along with Argentina where rains may cause damage. North American winter wheat should have some warmer weather than normal, which in January we usually do not view as a good thing. Russia has continued to export aggressively with domestic prices rising. On the March Kansas City chart, support is the 10-day at $4.98, then the $4.87 1/2 lower Bollinger Band. Resistance is at the 50-day at $5.07 3/4 then the upper Bollinger band at $5.24. 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.