DTN Midday Grain Comments 01/17 11:28

DTN Midday Grain Comments     01/17 11:28

   Corn, Beans Higher at Midday

   Light gains in slow trade are seen at midday; illustrated by March corn 2 
1/4 cent trading range.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are flat. The interest rate products are 
mixed. The dollar index is 5 points higher. Energies are lower with crude down 
$0.60. Livestock trade is mostly lower. Precious metals are lower with gold 
down $3. 

   CORN

   Corn trade is near the daily highs at midday up 2 cents; the overnight low 
as a quarter cent lower. It seems like the market is trying to gain sideways 
momentum with the break failing, but we just can't muster up much of a rally 
here. The South American recent weather pattern remains intact with a mix of 
excessive rain and pockets of dryness with some potential improvement. Ethanol 
margins remain poor with futures still near the lows, while blender margins 
have struggled to maintain gains. Winter weather will likely slow corn movement 
again, keeping basis flat to firmer. The government partial shutdown is 
expected to continue to limit news. On the March chart support is the lower 
Bollinger band at $3.70 1/2 with the 100-day at $3.77 resistance. 

   SOYBEANS

   Soybean trade is 2 cents higher at midday with March nearby trade working 
just below $9.00; this is the second day of light buying after the break with 
weather support and demand concerns illustrating the bull and bear battling. 
Meal is fractionally higher, and oil is 10 points higher. South America weather 
items remain in the recent weather pattern with harvest going early amid heat 
and pockets of dryness in Brazil with generally disappointing yields so far, 
and excessive rain potential in Argentina. Chinese trade issues regarding 
technology flared up again overnight. Basis has been pretty flat with the 
weather likely to add support. Forecasts are being monitored closely. Support 
is the 100-day at $8.91 with resistance at the $9.04 20-day moving average. 

   WHEAT

   Wheat trade is 2 to 3 cents higher at midday with wheat following corn 
higher with trade looking to break the streak of poor day session finishes. The 
dollar has bounced last week into this week, but remains in the lower part our 
two-month range. Southern Hemisphere harvest will continue in the near term. 
North American winter wheat should see a cool down this week, with snow cover 
expected in front of the cold snap for most areas but will need to be watched 
with longer-term forecast warmer. Russia domestic prices will be watched 
closely with firmer values again there. On the March Kansas City chart support 
is the $4.89 1/2 lower Bollinger Band. Resistance is at the 20-day at $5.00 
just above our midday trade, and then the 50-day at $5.04.

    David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser
He can be reached at dfiala@futuresone.com 
Follow him on Twitter @davidfiala


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