DTN Midday Grain Comments 01/25 11:01

DTN Midday Grain Comments 01/25 11:01 Grains Trending Higher at Midday Soybeans are the leader at midday up a nickel, with corn and wheat trading slightly higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 220 higher. The interest rate products are firmer. The dollar index is 77 points lower. Energies are mixed with crude up $0.32. Livestock trade is mostly lower. Precious metals are firmer with gold up $18.90. CORN Corn trade is flat to a penny higher with trade remaining overall rangebound as we head towards the weekend with trade coming off the early weakness. The South American recent weather pattern remains intact as we head towards February. Ethanol margins remain poor with futures just off the low, while blender margins are lackluster as well. 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 multiple moving averages at the $3.77-3.79 area, in which we are bogged down, with resistance the upper Bollinger Band at $3.84. SOYBEANS Soybean trade is 3 to 5 cents higher with trade holding near the upper end of the range. Meal is flat, and oil is 25 to 35 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 Argentina off to a generally good start. The Brazilian ral has declined again, improving their competitiveness on the world market. Basis has been pretty flat with the weather likely to add support. Trade is also watching for shipments off the west coast to China. Forecasts are being monitored closely. Support is the $9.08 50-day moving average, and resistance the 200-day at 9.23. WHEAT Wheat trade is flat to 2 cents higher with trade rebounding from nickel lower trade early after the IGC raised estimates for 2019 wheat production. The dollar remains in the mid part of the recent range with the heavy selling early on today. Southern Hemisphere harvest will continue in the near term. North American winter wheat should be OK moisture-wise with cold snaps the biggest threat for now with the worst of the cold likely for soft winter wheat. Russia domestic prices will be watched closely with firmer values again there. On the March Kansas City chart, support is the 50-day at $5.03 with resistance the upper Bollinger Band at $5.15, then the 100-day at $5.19 3/4. 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 (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.