DTN Midday Grain Comments 01/26 10:56
Wheat, Corn Lower at Midday
Soybeans are the leader at midday, while corn and wheat struggle.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are mixed at midday with the Dow futures down
30 points. The interest rate products are higher. The dollar index is 9 lower.
Energies are narrowly mixed. Livestock trade is sharply lower for cattle, and
hogs are higher. Precious metals are mixed with gold down $14.
Corn trade is 1 to 3 cents lower at midday in quiet action with trade
continuing to work in the recent range. Ethanol margins remain under pressure
which should lead to growing stocks and decreased production as we head into
February. The weekly export inspections were stronger at 886,625 metric tons.
The corn market is illustrating a sideways tone with resistance in the $3.87-90
area where the 10-day and 50-day moving averages sit, and support at the
100-day moving average around $3.76.
Soybean trade is 2 to 5 cents higher at midday with meal $4 to $5 higher and
oil 40 to 50 points lower. South American weather forecasts remain mostly good
with most of the concerns concentrated in Northern Brazil. Soymeal continues to
maintain an inverse with good demand for the front month. The weekly export
inspections were strong at 1.522 million metric tons, with more cancellations
by China possible. The March soybean chart resistance is the 10-day moving
average at $9.89, with limited nearby March support other than the $9.67 low
printed this morning, and then $9.20 which is our contract low printed in early
Wheat trade is 5 to 10 cents lower at midday across the three exchanges as
early mixed trade gave way to renewed selling with demand concerns moving back
to the forefront. Trade is fairly oversold but the consistent appreciation of
the dollar is a bigger driver for right now. Warmer weather across the Southern
Plains will limit wheat stress but could encourage some wheat to leave dormancy
early, although the forecasted early February cold seems to have moderated a
bit. Weekly export were disappointing at 263,035 metric tons. The March Kansas
City 10-day and lowest major moving average is at $5.73 which is nearby
resistance with the $5.61 low printed this nearby support; then $5.54, the
October and contract low.
David Fiala is a DTN contributing analyst and the president of FuturesOne
and a registered Trading Adviser.
David Fiala can be reached at firstname.lastname@example.org
Follow David Fiala on Twitter @davidfiala
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