DTN Midday Grain Comments 02/01 11:32

DTN Midday Grain Comments 02/01 11:32 All Grain Trading Lower at Midday Trade is mildly lower across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow futures down 40 points. The interest rate products are higher. The dollar index is 40 points lower. Energies are lower with crude down $1.50. Livestock trade is lower. Precious metals are mixed with gold up $8.80. CORN Corn trade is 2 to 4 cents lower at midday with widespread selling across most commodities this morning as crude oil has slumped sharply on Chinese manufacturing data and South Korean export data. The ethanol margins are still fairly stable, but not at great levels for producer or blender with ethanol and unleaded futures lower this morning. Weekly export inspections were ok at 681,807 metric tons. Basis should firm a bit with the expected blizzard disrupting grain movement. On the March chart the 50-day moving average is nearby support at $3.66. Further resistance is up at the $3.82 level where we find the two-month high and the 100-day moving average. The 200-day at $3.90 would be the next upside level of resistance. SOYBEANS Soybean trade is 1 to 4 cents lower at midday with trade following the generally commodity weakness this morning, with meal $1 to $2 lower, and oil is flat to 10 points lower. South American weather continues to show some areas of stress but the overall outlook lacks major threats, with Argentina looking the driest in the near term, while Brazil is more of a mixed bag. Early harvest continues to be variable in Brazil, and there storms that disrupt southern Brazil port operations in the near term. Weekly export inspections remained solid at 1.135 million metric tons. On the March soybean chart the 20-day at $8.73 is support again, with the 100-day at $8.82 still acting as resistance for now. WHEAT Wheat trade is 4 to 7 cents lower across the three contracts at midday with broader commodity weakness overcoming the softer dollar trade. Demand concerns will continue to linger with the strong dollar keeping US exports at a significant disadvantage, especially for northern hemisphere exports with the weak ruble and Canadian dollar. The winter storm is expected to bring beneficial moisture to some of the winter wheat areas. Export inspections remain soft at 281,936 metric tons. On March Kansas City, chart support at the 20-day moving average at $4.68 which we have eased below at midday, with the 50-day at $4.81 longer-term resistance above the market. Longer term resistance is the contract low at $4.51. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.