DTN Midday Grain Comments 01/05 11:37

DTN Midday Grain Comments 01/05 11:37 Soybeans Higher, Corn Flat, Wheat Lower at Midday Soybeans are firmer with quiet midday trade that has corn flat and wheat lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 90 points. The interest rate products are higher. The dollar index is 13 higher. Energies are lower with crude down $0.77. Livestock trade is sharply lower for cattle, and flat to lower for hogs. Precious metals are mixed with gold $1.00 lower. CORN Corn trade is flat to 1 cent lower at midday with light two-sided trade as we stay between $3.50 and $3.55 on the March contract. Ethanol futures remain flat at midday with trade drifting along in the lower end of the range. Corn basis and carry are expected to be steady to soft into the middle of the month. Cold weather should continue to support livestock feed demand, but a warm-up looks to be on deck for the middle of the country. Weekly export sales were poor at 101,200 metric tons. 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 $3.54, then the 100-day at $3.65. SOYBEANS Soybean trade is 1 to 3 cents higher at midday with the overnight forecast shifting a bit drier for South America, although some light rains are moving through Argentina this morning. Meal is flat to $1 higher, and oil is flat to 10 points lower. South American weather looks to stay mostly dry in Argentina in the near term, with Brazil still mostly good. Basis and carry remain mostly sideways. Weekly export sales were soft at 554,000 metric tons of soybeans, 109,000 mt of meal, and 17,900 mt of oil. On the March, support is the 10-day at $9.65, and resistance the 20-day at $9.74. WHEAT Wheat trade is 3 to 6 cents lower at midday with trade consolidating gains just above support with the extended forecast milder with some potential moisture. The winterkill potential has the market nervous for now, but will remain unproven until spring. And with fewer near-term threats, we are seeing some profit-taking. The dollar has gravitated toward the lower end of the recent range, with choppy action between 91.5 and 92 on the index. Weekly export sales were soft at 131,000 metric tons. On the March KC contract, chart support is the 50-day at $4.32 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.