DTN Midday Grain Comments 01/04 11:19

DTN Midday Grain Comments 01/04 11:19 Grains Mixed at Midday Wheat is mixed at midday, row crops are weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 145 points. The interest rate products are higher. The dollar index is 27 lower. Energies are mixed with crude up 0.40. Livestock trade is mostly higher, led by cattle. Precious metals are mixed with gold 1.50 higher. CORN Corn trade is 1 to 2 cents lower in quiet trade midday with action staying just above nearby resistance, and has firmed off the early trade. The weekly ethanol report showed production down 58,000 barrels per day, stocks are 588,000 barrels higher, with the build concentrated in one area, and gasoline demand was down 8.7%. Corn basis and carry are expected to be steady to soft. Cold weather should continue to support livestock feed demand. 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 3 to 6 cents lower at midday with trade working lower on quiet exports and a slightly wetter South American forecast. Meal is flat to $1 lower, and oil is 10 to 20 points lower. 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 as we get deeper into the growing season, with the first soybeans in Brazil starting to get cut. Basis and carry should remain sideways this week. On the March, support is the day low at $9.59, and the recent low at $9.56 below that, with the 10-day at $9.64 as resistance after failing to hold this morning. WHEAT Wheat trade is mixed at midday with trade working to consolidate above the $4.35 area for Kansas City, with spring wheat leading this morning. The plains continue to be mostly dry and cold in the short term with the freeze starting to moderate into the weekend with some snow potential with that. The winter kill potential has the market nervous for now, but will remain unproven until spring. The dollar has gravitated towards the lower end of the recent range, with choppy action between 91.5 and 92 on the index. On the March Kansas City contract, chart support is the 50-day at $4.33 that we moved through Tuesday, 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.