DTN Midday Grain Comments 01/08 10:57

DTN Midday Grain Comments 01/08 10:57 Grains Mixed at Midday Wheat leads action at midday with row crops soft, especially soybeans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer today with the Dow up 90. The interest rate products are mixed. The dollar index is 25 higher. Energies are mostly firmer with crude up $0.90. Livestock trade is firmer. Precious metals are mixed with gold down $4.50. CORN Corn trade is flat to 1 cent lower at midday with early strength fading with more consolidative action ongoing. The South American recent weather pattern remains intact with a mix of excessive rain and pockets of dryness. Ethanol profitability remains the market bear's biggest argument with ethanol futures turning lower again this morning. The government partial shutdown is expected to continue to limit news, including the monthly report this week. Trade talks with China has raised the specter of potential fresh corn exports. On the March chart support is at the $3.80 20-day with resistance at the $3.87 3/4 December high then the four-month high at $3.90 1/4. SOYBEANS Soybean trade is 6 to 8 cents lower with trade edging into overbought territory and little fresh news this morning encouraging some profit taking. Meal is $1.00 to $2.00 lower and oil is 5 to 15 points lower. 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, with global stocks remaining ample. Forecasts are being monitored closely. 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 6 cents higher at midday with buying returning overnight with trade working to test nearby resistance this morning. 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 with late-emerging wheat especially vulnerable. Russia has continued to export aggressively with domestic prices rising, leaving U.S. bushels priced to move. 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.