DTN Midday Grain Comments 01/06 11:09

DTN Midday Grain Comments 01/06 11:09 Grains Mixed at Midday The U.S. stock market is mixed with the Dow down 40. The dollar index is 14 points lower. Interest rate products are firmer. Energies are mixed with crude unchanged. Livestock trade is firmer with cattle leading. Precious metals are mixed with gold 14.00 higher. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is 1 to 2 cents lower with trade pulling back to the low end of the recent range, but stayed just short of the gap left in December. Ethanol margins are stable to start the week, with blenders seeing the most benefit from the energy move so far, with ethanol futures staying at the lower side of the range. Weekly inspections were in line with recent weeks at 550,930 metric tons. US weather looks to be more active to the east in the U.S., allowing for more movement west for now, while South America remains mixed. Basis should stay steady to start the week. On the March contract, support is at the 20-day moving average at $3.84 which we tested, with major support at the $3.71 3-month low. Chart resistance is at the upper Bollinger band at $3.96. SOYBEANS Soybeans trade is 5 to 6 cents higher overnight, with trade finding some light buying after early weakness as we hold in the upper end of the range. Meal is $2.50 to $3.50 higher, and oil is 50 to 60 points lower. The trade deal signing looks to be set for next week, but implementation may not come until Mid-February. South American weather has the biggest holes in Argentina in the short term, with Brazilian coverage better to the north. Basis has remained firm at processors with the strong crush margins. Weekly export inspections remain soft at 963,830 metric tons. The March chart support is at the 20-day at $9.34 with resistance at the $9.65 upper Bollinger Band. WHEAT Wheat trade is flat to 4 cents lower at midday with trade firming off the early lows, and tests of support. Cold threats remain limited for the plains, with no follow up moisture expected this week. Spread action is narrower during the day session, putting KC at a 75 cent discount to Chicago, while Minneapolis is back to a nickel discount. Weekly export inspections remain soft at 345,109 metric tons. The March KC chart support is the old high at $4.68, with resistance the upper Bollinger Band at 4.96, then $5.00. 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 (AG) Copyright 2020 DTN/The Progressive Farmer. All rights reserved.