DTN Midday Grain Comments 01/02 11:21

DTN Midday Grain Comments 01/02 11:21 Corn, Wheat Higher at Midday Wheat is the leader at midday, with soybeans failing to hold early gains. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 50 points. The interest rate products are lower. The dollar index is 25 lower. Energies are mostly lower with crude down 0.20. Livestock trade is mostly higher with cattle leading. Precious metals are mixed with gold 5.20 higher. CORN Corn trade is 2 to 3 cents higher at midday with light buying to start the year, with support from the stronger wheat trade. Ethanol futures should find support from slower production runs as natural gas drives cost up with the cold snap, with trade slightly higher this morning. Corn basis and carry are expected to be steady to soft. Chinese domestic corn values are expected to remain firm. The weekly export inspections remained fairly steady at 683,898 metric tons. On the March chart, trade has moved back above the 20-day at $3.51 and with the 10-day at $3.50 below that then the 50-day moving average at 3.55 the next major resistance. SOYBEANS Soybean trade has turned mixed at midday with trade surrendering early gains after gapping higher to start with Argentina seeing mixed short-term conditions, and short term demand concerns still present. Meal is flat to $1 higher and oil is flat to 10 points higher. South American weather looks to remain good for Brazil, and drier for Argentina in the short term. Basis and carry should remain sideways. Export inspections were a bit softer at 1.14 million metric tons. On the March, chart support is the recent low at $9.54 3/4 scored Friday. Resistance is at the $9.64 10-day which we failed to hold this morning then the 200-day at $9.80. WHEAT Wheat trade is 5 to 9 cents higher at midday with trade finding good buying after the weekend cold snap with only mild relief in the near term. The plains continue to be mostly dry and cold in the short term with the freeze starting to moderate towards the end of the week. The dollar has gravitated towards the lower end of the recent range with trade moving towards 91 on the index. Weekly export inspections were softer at 274,506 metric tons. On the March Kansas City contract, chart support is the $4.10 1/2 fresh contract low scored on last week, with the 10-day at $4.17 serving as first support, with the 20-day at $4.22 nearby support. If we can consolidate here, the 50-day at $4.34 is the next round up with trade edging above it at midday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.