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DTN Midday Grain Comments     01/18 11:42

   Wheat, Beans Trending Higher at Midday

   Soybeans and wheat are firmer, corn near unchanged at midday.

By David Fiala
DTN Contributing Analyst

 General Comments

   U.S. stock market indices are lower at midday with the Dow futures down 80 
points.  The interest rate products are higher. The dollar index is 7 lower. 
Energies are narrowly mixed. Livestock trade is higher this morning. Precious 
metals are mixed with gold 6.50 lower. 


   Corn trade is fractionally lower at midday with trade working to consolidate 
the gains from yesterday. The weekly ethanol report showed production at 6.53% 
higher, with stocks .11% higher and gasoline demand down 1.63% with a jump in 
ethanol exports. Basis has been flat to a little better with carry steady to 
slightly stronger to start the week with warmer weather likely boosting 
movement towards the weekend. Warmer weather should help to throttle back 
livestock feeding coming forward. The weekly export sales are delayed until 
Friday. On the March chart support is the 50-day at $3.52 we closed above 
yesterday, with the 20-day at $3.50 below that, and resistance at the 100-day 
at $3.58. 


   Soybean trade is 2 to 4 cents higher at midday with trade working to 
consolidate above the support levels found yesterday in the low $9.60's on the 
March. Meal is $2 to $3 higher and oil is 10 to 20 points lower. South American 
weather looks to continue the recent pattern in the near term with the north 
and south dry, and the middle wet. Basis and carry remains mostly sideways. The 
export wire was quiet again today, with only new crop sales on the wire so far 
this week. On the March, support is the 10-day and 20-day $9.64 that we have 
tested this morning and resistance the 50-day at $9.84. 


   Wheat trade is flat to 3 cents higher with winter wheat the midday leader. 
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. The dollar remains below 
91 on the index with the trend still lower, with rallies being sold. The gap 
between US and Russian origin has narrowed but remains more favorable to 
Russia. On the March Kansas City contract, chart support is the lows at $4.10, 
with the weekly low of $4.21 becoming nearby support with the 20-day at $4.29 
as the first level of resistance with the 50-day at $4.30 above that, which we 
have tested this morning.

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


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