DTN Midday Grain Comments 01/17 11:01
Grains Trending Higher at Midday
The U.S. stock market is firmer with the Dow up 30. The dollar index is 30
points higher. Interest rate products are mixed. Energies are flat. Livestock
trade is mixed. Precious metals are mostly higher with gold 6.30 higher.
By David Fiala
DTN Contributing Analyst
Corn trade is 7 to 8 cents higher at midday with good buying during the day
session as we bounce back to the mid-part of the range. Ethanol margins remain
tight, with futures just above the lows with export business needing to pick
up, or we will likely see plants being idled again soon. U.S. weather will
likely limit short-term movement in most areas. Basis has -remained sideways
overall this week. On the March contract support is $3.77 recent low, with the
lower Bollinger Band at $3.79 just above that, and resistance the 20-day at
Soybean trade is flat to 1 cent lower higher at midday with trade still
grinding near the lows with one more gap area to fill nearby with trade still
waiting to see fresh export news. Meal is flat to $1.00 lower, and oil is 5 to
15 points higher. The Brazilian ral remains very cheap as well. South American
weather remains within the recent pattern for soybeans as well. Basis has
remained firm at processors with the strong crush margins. The March chart
support is at the December gap at $9.15 after trade fell below the $9.27 gap
yesterday which is resistance for now.
Wheat trade is 1 cent to 5 cent higher at midday with Minneapolis taking the
lead after Chicago was the overnight leader. Cold threats remain limited for
the Plains with most of the moisture staying to the east, with western snow
cover remaining limited, while Russia has been warmer and drier while the
dollar gains vs. the ruble. Kansas City is at an 80 cent discount to Chicago,
while Minneapolis is back to a 12 cent discount. The March Kansas City chart
support is the 20-day moving average at $4.79, with resistance the upper
Bollinger Band at 5.03.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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