DTN Midday Grain Comments 01/08 11:52

DTN Midday Grain Comments 01/08 11:52 All Grains Lower at Midday Row crops lead the trade lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower at midday with the Dow futures down 30 points. The interest rate products are mostly higher. The dollar index is 30 higher. Energies are mixed with crude down 0.10. Livestock trade is mixed for cattle and higher for hogs. Precious metals are lower with gold 2.60 lower. CORN Corn trade is 3 to 4 cents lower at midday with trade testing the low end of the range with spillover pressure from weaker soybean trade to start. Ethanol futures are expected to remain at the lower end of the range with winter driving demand adding pressure, while blender margins remain good with futures down 1 1/2 cents this morning. Corn basis and carry are expected to be steady to soft into the middle of the month. Warmer weather should help ethanol output, while livestock see less stress this week. South American weather remains mixed in the short term with more of the crop entering the reproductive cycle into the middle of the month. The USDA announced 102,100 metric tons of corn sold to Mexico. The weekly export inspections showed improvement at 894,226 metric tons. On the March chart support is the $3.46 1/2 contract low, which we came within 3/4 penny. Resistance is at the 20-day moving average at 3.50 1/2 that we fell below this morning then the 50-day at $3.54. SOYBEANS Soybean trade is 8 to 10 cents lower with trade pulling back with a little more rain in the extended forecast for Argentina and limited issues in Brazil. Meal is $2 to $3 lower and oil is 30 to 40 points lower. South American weather looks to stay mostly dry in Argentina in the near term with the better rain potential seven days out, with Brazil still mostly good with the NE Brazil the driest. Basis and carry remains mostly sideways. The export wire has been quiet to start the year, but we had sales of 132,000 metric tons to unknown, and 120,000 to Egypt this morning. Weekly export inspections were ok at 1.19 million metric tons. On the March, support is the recent low at $9.54, and resistance the 10-day at $9.65. WHEAT Wheat trade is 1 to 3 cents lower at midday with warmer weather easing winter kill concerns, while the northern plains look to see better moisture in the near term. Trade has been able to firm off the early-day session lows. The winter kill losses from the recent cold stretch won't be apparent until later in spring, with dryness the larger concern again, while Russia has been warmer than normal, with minimal snow cover in case of a cold stretch. The dollar has bounced back over 92 on the index this morning. The weekly export inspections remained soft at 234,418 metric tons. On the March KC contract, chart support is the 50-day at $4.32 that we are tested this morning, 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.