DTN Midday Grain Comments 01/09 11:45

DTN Midday Grain Comments 01/09 11:45 All Grain Higher at Midday Firmer trade across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer today with the Dow up 125. The interest rate products are mixed. The dollar index is 55 points lower. Energies are firmer with crude up $1.55. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold up $5.50. CORN Corn trade is around 2 cents higher at midday with the market looking to consolidate above $3.80 nearby after the move on Tuesday. The South American recent weather pattern remains intact with a mix of excessive rain and pockets of dryness. Ethanol profitability remains an issue with production falling with week, down 11,000 barrels per day, and stocks up 92,000 barrels with poor blending rates. Ethanol futures have edged slightly higher following the energy complex. 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 with good progress reported to have been made. 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 3 to 5 cents higher with light buying after the bout of profit taking yesterday as we remain at the upper end of the recent range. Meal is $1.00 to $2.00 higher and oil is 10 to 20 points higher. South America weather items remain in the recent weather pattern with harvest going early amid heat and pockets of dryness in Brazil with generally disappointing yields so far, 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 $9.10 with resistance at the $9.30 200-day then the upper Bollinger band at $9.39. WHEAT Wheat trade is 2 to 4 cents higher at midday with trade testing the resistance again this morning, with a strong close today likely to trigger more chart buying with support from the sharply lower dollar. Southern Hemisphere harvest will continue in the near term. 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 $4.99, then the $4.87 1/2 lower Bollinger Band. Resistance is at the 50-day at $5.06 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 dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.