DTN Midday Grain Comments 01/07 11:13

DTN Midday Grain Comments 01/07 11:13 Grains Trending Lower at Midday The U.S. stock market is mixed with the Dow down 70. The dollar index is 40 points higher. Interest rate products are mixed. Energies are mixed with crude, down $0.80. Livestock trade is mostly lower with cattle the downside leader. Precious metals are mixed with gold 2.90 higher. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is flat to 1 cent lower at midday with trade testing support and the mid-December gap area overnight with little fresh news to move corn. Ethanol margins remain stable with blender margins holding up the best overall with ethanol futures mired at the lower end of the range. U.S. 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. Brazil has seen some weather stress on the early corn-growing areas. Basis has remained sideways to start the week. On the March contract support is at the 20-day moving average at $3.84 which we are testing at midday, 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 lower at midday with light selling continuing with reports that the trade deal won't change any quotas for soybean imports by China. Meal is $1.50 to $2.50 lower, and oil is 10 to 20 points higher. The export wire has been quiet to start the New Year, with a greater pullback potentially needed to kickstart sales again. 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. The March chart support is at the 20-day at $9.36 with resistance at the $9.65 upper Bollinger Band. WHEAT Wheat trade is 3 to 6 cents lower at midday with trade starting to carve out more of a sideways range with Chicago the midday leader. Cold threats remain limited for the plains, with no follow-up moisture expected this week. Spread action is wider at midday, putting Kansas City at a 77 cent discount to Chicago, while Minneapolis is back to a 4 cent discount. The dollar has firmed this morning but remains at the lower end of the range. The March Kansas City chart support is the old high at $4.68, with resistance the upper Bollinger Band at 4.97, 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.