DTN Midday Grain Comments 01/25 11:36

DTN Midday Grain Comments 01/25 11:36 Grains Trending Lower at Midday A weak tone is seen at midday after earlier strength. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the DOW futures up 140 points. The interest rate products are mixed. The dollar index is 55 lower. Energies are higher with crude up .30. Livestock trade is mixed led by cattle. Precious metals are higher with gold 4.00 higher. CORN Corn trade is a penny lower at midday with trade staying at the upper end of the range. March tested resistance at $3.58 this morning. Ethanol margins remain steady with energies and corn both firming, but ethanol futures are slightly weaker. Basis is expected to remain mostly steady through midweek with plenty of cash movement today potentially adding some near term weakness. The weekly sales expected to be in the 800,000 to 1.2 million metric ton range when released tomorrow. On the March chart support is the 50-day at $3.51, with the 20-day at $3.51 below that, and resistance at the 100-day at $3.58. SOYBEAN Soybean trade is 4 lower at midday after trading around a nickel higher just 30 minutes ago. Some slight changes in forecasts and noted selling interest on the rally this week have been noted. Meal is $3 lower and bean oil is flat to 5 points higher. South American weather looks to continue the recent pattern with more improvement expected in the north later in the week, and a drier south. The Brazilian real is surging after the courts upheld the corruption conviction of the former President. Basis and carry remains mostly sideways. Trade will be watching for better export movement on the daily wire with nothing seen again today. On the March, support is the 100-day at $9.87 which is the highest major moving average, with the $10.00-$10.02 area resistance with a test of $10.02 this morning. WHEAT Wheat trade is mixed at midday after trading around 5 cents higher not too long ago. We were firmer with the weaker dollar and dry weather for the plains. Warmer weather should be the rule in the near term, but moisture will likely remain short in the near term for much of the plains with some potential improvement in the second week. The dollar is near 88 on the index, this should continue to boost export competitiveness coming forward. The weekly sales are expected to be in the 300,000 to 500,000 metric ton range when released tomorrow. On the March Kansas City contract, chart support is the 10, 20, and 50 day moving averages at $4.30 with resistance the 100-day at $4.41. 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.