DTN Midday Grain Comments 01/10 11:30

DTN Midday Grain Comments 01/10 11:30 Grains Mixed at Midday Corn and wheat are lightly firmer at midday, soybeans weaker. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower at midday with the Dow futures down 35 points. The interest rate products are higher. The dollar index is 29 lower. Energies are mixed with crude up 0.40. Livestock trade is mixed. Precious metals are higher with gold 5.40 higher. CORN Corn trade is flat to 1 cent higher at midday in quiet action just below $3.50. The weekly ethanol report had production 3.49% lower with stocks .44% higher, and gasoline demand 1.90% higher, with ethanol futures slightly higher with blender margins remaining strong. Corn basis and carry remains fairly steady. Warmer weather should help ethanol output, but cold weather is back this weekend. Livestock efficiency should struggle with the very cold spells and changing weather, that is OK for feed demand in the bigger picture. On the March chart support is the $3.46 1/2 contract low. Resistance is at the 20-day moving average at 3.50 1/4 then the 50-day at $3.54. SOYBEANS Soybean trade is 3 to 6 cents lower at midday with trade continuing to work the lower end of the recent range in quiet trade. Meal is $1 to $2 lower and oil is 5 to 15 points lower. South American weather looks to stay mostly dry in Argentina in the near term with better rains this week, along with north east Brazil remaining fairly dry, and southern Brazil in good shape. Basis and carry remains mostly sideways. The export wire is will be watched after some early week action with 260,000 metric tons of mostly new crop announced as sold to unknown this morning. On the March, support is the recent low at $9.54, and resistance the 10-day at $9.65. WHEAT Wheat trade is flat to 2 cents higher for the winter wheat, and flat to 2 lower for the spring with trade staying near the upper end of the recent range. The winter kill losses from the recent cold stretch won't be apparent until later in spring, with dryness the larger concern again with the major storm looking to miss most of the major wheat growing areas, while Russia has been warmer than normal, with minimal snow cover in case of a cold stretch. The dollar fallen back below 92 on the index on concerns about Chinese demand for U.S. treasuries coming forward. On the March KC contract, chart support is the 10-day at $4.34, with the 100-day at $4.43 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.