DTN Midday Grain Comments 01/29 11:01

DTN Midday Grain Comments 01/29 11:01 All Grains Lower at Midday Weaker trade across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow 30 higher. The interest rate products are weaker. The dollar index is 6 points higher. Energies are firmer with crude down $1.20. Livestock trade is higher. Precious metals are higher with gold up $5.60. CORN Corn trade is 2 to 3 cents lower at midday with trade fading back into support at midday. The reopening of the government should give better insight into recent export bookings and fund positions, and more direction on the delayed January report data with most delayed data scheduled for the February WASDE on the 8th, with the first optional origin sale of corn announced today at 138,000 metric tons sold to South Korea. The South American recent weather pattern remains intact as we head towards February with improvement expected in seven to 10 days. Ethanol margins remain poor with futures just off the lows, while blender margins improving today. Winter weather will likely slow corn movement again, keeping basis flat to firmer. On the March chart support is the multiple moving averages at the $3.77-3.79 area, which we are testing again, with resistance the upper Bollinger Band at $3.84. SOYBEANS Soybean trade is 4 to 6 cents lower at midday with trade pulling back again from the highs. Meal is flat to $1.00 lower and oil is 20 to 30 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 is trying to firm today but remains on the lower end of the range. Basis has been pretty flat with the weather likely to add support. Trade talks are scheduled for Wednesday and Thursday with China. Forecasts are being monitored closely. Support is the the 200-day at 9.22 which we are back 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 4 to 8 cents lower at midday with trade falling back through first support with broad selling today. 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. India raised production estimates to over 100 million metric tons for the coming year. Russia domestic prices will be watched closely with firmer values again there. On the March Kansas City chart, support is the lower Bollinger Band at $4.90, and resistance the 20-day at $5.03. 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.