DTN Midday Grain Comments 01/28 11:03

DTN Midday Grain Comments 01/28 11:03 All Grains Lower at Midday Weaker trade across the board to start the week. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 300 lower. The interest rate products are weaker. The dollar index is 8 points lower. Energies are weaker with crude down $1.90. Livestock trade is mostly higher. Precious metals are mixed with gold up $4.30. CORN Corn trade is 1 to 2 cents lower at midday, holding rangebound just above support. The reopening of the government should give better insight into recent export bookings, and more direction on the delayed January report data with most delayed data scheduled for the February WASDE on the 8th. The South American recent weather pattern remains intact as we head toward February with improvement expected in seven to 10 days. Ethanol margins remain poor with futures just off the low, while blender margins are lackluster as well with a few more weeks to go until spring driving season. Winter weather will likely slow corn movement again, keeping basis flat to firmer. Weekly export inspections were soft at 893,001 metric tons. On the March chart support is the multiple moving averages at the $3.77-3.79 area which we closed above again, with resistance the upper Bollinger Band at $3.84. SOYBEANS Soybean trade is 4 to 6 cents lower at midday with some light two sided trade to start with a focus on delayed export data, and South American weather. Meal is $1.00 to $2.00 lower, and oil was flat to 10 points lower. South America weather items remain in the recent weather pattern with harvest going early amid heat and pockets of dryness in Brazil with generally disappointing yields so far, and Argentina off to a generally good start to the growing season. Next week is expected to bring rain to Brazil and drier weather to Argentina. The Brazilian real has declined again, improving their competitiveness on the world market. Basis has been pretty flat with the weather likely to add support. Trade talks are scheduled for Wednesday and Thursday. Weekly export inspections were off a bit at 929,417 metric tons. Forecasts are being monitored closely. Support is the the 200-day at 9.22 which we are just below at midday, and then the 10 and 20-day at $9.10 and resistance the upper Bollinger Band at $9.32. WHEAT Wheat trade is 1 to 5 cents lower at midday with trade remaining at the upper end of the recent range with overbought conditions and little fresh news. The dollar remains in the mid part of the recent range with choppy trade to continue. Southern Hemisphere harvest will continue in the near term with record heat in Australia. North American winter wheat should be ok moisture wise with cold snaps the biggest threat for now with the worst of the cold likely for soft winter wheat and the plains likely to warm into the weekend. Russia domestic prices will be watched closely with firmer values again there. Weekly export inspections softened to 352,163 metric tons. On the March Kansas City chart support is the 50-day at $5.03 with resistance the upper Bollinger band at $5.15, then the 100-day at $5.19 3/4. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.