DTN Midday Grain Comments 01/29 11:00

DTN Midday Grain Comments 01/29 11:00 Beans, Wheat Higher at Midday Trade remains firmer across the board at midday with wheat leading. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower at midday with the Dow futures down 100 points. The interest rate products are higher. The dollar index is 50 higher. Energies are lower with crude down 0.80. Livestock trade is mixed. Precious metals are lower with gold 15.00 lower. CORN Corn trade is 2 to 3 cents lower at midday with trade pushing through the next round of resistance this morning, with a close at these levels needed to add more momentum, with weather concerns and broader commodity strength the biggest drivers. Ethanol margins should tighten a bit with the firmer corn and weaker energy prices, with ethanol futures edging higher. Basis is expected to remain mostly steady to lower with increased cash movement adding some pressure. Weekly export inspections were very good at 993,506 metric tons. The USDA announced 115,000 metric tons of corn sold to Egypt. On the March chart support is 10,20, and 50-day moving averages at $3.51-52 and resistance at the 100-day at $3.58, which we are just above at midday, with the 200-day moving average at $3.76 the highest moving average. SOYBEANS Soybean trade is 1 to 4 cents higher at midday with trade back to the recent highs on concerns about Argentina dryness and general ag strength before pulling back. Meal is $3.50 to $4.50 higher and oil is flat to 10 points higher. South American weather looks to continue the recent pattern with more improvement expected in the north, and a drier south with Argentina looking to see a bit more near-term dryness. The Brazilian real is pausing as it pulls back from the upper end of the range. Basis and carry remains mostly sideways. Weekly export inspections were decent at 1.1 million metric tons. On the March, support is the 100-day at $9.87 which is the highest major moving average with the 50-day at $9.83 below that, with the $10.00-$10.02 area resistance with trade just below that area at midday. WHEAT Wheat trade is 1 to 8 cents higher at midday with trade consolidating the breakout seen on Friday. The plains look like they stay mostly dry in the near term, which is likely the main driver of winter wheat buying enthusiasm. The dollar is just above 89 on the index, with the slide stopping for now, while the overall trend remains lower. Weekly export inspections were good at 579,875 metric tons. On the March KC contract, chart support is the 100-day at $4.41, with the 200-day well above the market at $4.73. 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.