DTN Midday Grain Comments 01/03 11:29

DTN Midday Grain Comments 01/03 11:29 Soy, Wheat Higher at Midday Wheat is the leader at midday, with row crops near unchanged. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 100 points. The interest rate products are mostly higher. The dollar index is 27 higher. Energies are higher with crude up 1.00. Livestock trade is mixed. Precious metals are mixed with gold 1.50 higher. CORN Corn trade is narrowly mixed at midday falling back from the resistance level overnight. Ethanol futures should find support from slower production runs as natural gas drives cost up with the cold snap, but futures have edged back lower. Corn basis and carry are expected to be steady to soft. Chinese domestic corn values remain fairly firm. There is some battling on selling corn against wheat in spread trading, but also some bigger pictures spillover support from the positive wheat move. All said it seems like the market is still wanting the nearby corn trade to march around the $3.50 level. On the March chart support is at the $3.51 20-day then the $3.46 1/2 contract low. Resistance is at the 50-day moving average at 3.55 then the 100-day at $3.65. SOYBEANS Soybean trade is 1 to 3 cents higher at midday with trade pushing through the first level of resistance overnight with Argentina remaining dry in the short term. Meal is flat to $1 higher, and oil is 20 to 30 points higher. South American weather looks to remain good for Brazil and drier for Argentina in the short term with a potential shift in the l1-15 day range. Basis and carry should remain sideways this week 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 moved through overnight then the 200-day at $9.79. WHEAT Wheat trade is 1 to 5 cents higher across the three contracts at midday with trade consolidating through and above the next levels of resistance that we jumped through yesterday with Kansas City trade leading. 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. This has the market nervous with this nice upside chart breakout to start out 2018. The dollar has gravitated towards the lower end of the recent range, but has bounced back towards the 92 area. On the March Kansas City contract, chart support is the 50-day at $4.33 that we moved through yesterday, with the 100-day at $4.45 as the next level of resistance. 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.