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Monday, January 22, 2018  
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DTN Midday Grain Comments     01/22 11:43

   Grains Mixed At Midday

   Soybeans are the midday leader, with corn and wheat flat to lower.

By David Fiala
DTN Contributing Analyst

 General Comments

   U.S. stock market indices are mixed at midday with the Dow futures down 8 
points.  The interest rate products are lower. The dollar index is 15 lower. 
Energies are higher with crude up 0.65. Livestock trade is mostly higher. 
Precious metals are mixed with gold 0.50 higher. 


   Corn trade is fractionally lower at midday with trade chopping right around 
the 50-day moving average in light two-sided trade. Ethanol margins are 
slightly tighter with ethanol futures slightly lower. Basis is expected to be 
steady to start the week with corn movement slow to start. Blizzard conditions 
will support livestock consumption but warmer weather is expected again on the 
backside of the system. With the government shutdown, export inspections were 
still released today from last week, but will be postponed coming forward if 
the shutdown continues, with 668,946 metric tons moved last week. On the March 
chart support is the 50-day at $3.52 we closed above to close last week, with 
the 20-day at $3.51 below that, and resistance at the 100-day at $3.58. March 
futures have been in an 8 1/2 cent trading range for the past six weeks.


   Soybean trade is 5 to 8 cents higher at midday with the March contract 
testing resistance to open the week with drier weather in Argentina continuing 
in the immediate term. Meal is $5.00 to $6.00 higher and oil is 5 to 15 points 
higher. South American weather looks to continue the recent pattern with more 
improvement expected in the north later in the week. Basis and carry remains 
mostly sideways. Export inspections were the best in a month at 1.419 million 
metric tons. On the March, support is the 10-day and 20-day $9.65 and 
resistance the 200-day at $9.79, which we have moved above overnight, along 
with the 50-day at $9.83, with the 100-day at $9.86 above that which we are 
testing at midday. 


   Wheat trade is mixed at midday with the market reluctant to extend gains so 
far with corn turning weaker. 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 especially with the government shut down ongoing. The 
gap between U.S. and Russian origin has narrowed but remains more favorable to 
Russia. Weekly export inspections improved slightly to 337,980 metric tons. 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 10,20, and 50-day moving 
averages concentrated at $4.30 which we are tested overnight.

   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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