DTN Midday Grain Comments 02/05 11:10

DTN Midday Grain Comments 02/05 11:10 All Grains Lower at Midday Slow and mostly lower trade is seen at midday with bean oil the only green market. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed at midday with the Dow futures down 45 points. The interest rate products are mixed. The dollar index is 31 higher. Energies are lower with crude down 0.35. Livestock trade is mixed. Precious metals are higher with gold 0.60 higher. CORN Corn trade is 2 to 3 cents lower at midday with broadly softer trade to start the week with mixed forecasts. Ethanol margins should be fairly steady to start the week with ethanol futures pulling back this morning along with corn. Basis is expected to remain mostly steady with some locations slipping with increased cash movement on the strength, but that should be wrapping up. Weekly export inspections continued to improve with 1.103 million metric tons on the week, along with 130,000 metric tons announced as sold to South Korea. On the March chart support is now the 100-day at $3.57 with the 10-day at 3.56 below that, with the 200-day moving average at $3.76 the highest moving average resistance after the $3.62 1/2 high printed today. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with trade unwinding a little bit more with relief for parts of Argentina remaining in the forecast. Meal is $4 lower and oil is 15 points higher. South American weather is expected to keep Brazil wet, Argentina drier until the end of the week, when rains are expected to tick up. The Brazilian real has pulled back from the highs, with U.S. exports expected to remain slow, although we saw 198,600 metric tons sold to unknown today. Export inspections were a little better at 1.303 million metric tons. On the March, support is the overnight low at $9.70, with resistance at the 20-day at $9.77. WHEAT Wheat trade is 1 to 4 cents lower with Kansas City trade the firmer wheat contract. The plains look like they stay mostly dry in the near term, with crop conditions likely seeing continued stress, but there was some snow added to the northern parts of Kansas. The extended forecast may have some relief, but overall continues to look limited for the Hard red wheat areas. The dollar is just above 89 on the index, with trade mostly holding gains this morning. Weekly export inspections were decent at 428,557 metric tons. On the March KC contract, chart support is the overnight low at 4.55 with the 200-day the next level of resistance at $4.73. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.