DTN Midday Grain Comments 01/08 11:08

DTN Midday Grain Comments 01/08 11:08 Grains Mixed at Midday The U.S. stock market is firmer with the Dow up 140. The dollar index is 23 points higher. Interest rate products are firmer. Energies are weaker with crude down $2.00. Livestock trade is mostly higher with feeder cattle leading. Precious metals are mixed with gold $4.80 lower. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is 1 to 2 cents lower grinding along the lower end of the range with little fresh bullish news, as the bigger outside market moves seen post-Iranian attack fade with the dollar higher, and crude turning lower. Ethanol margins remain stable with the weekly report disappointing with production down 4,000 barrels per day, and stocks seeing the usual post-holiday surge at 1.423 million barrels higher, with ethanol futures edging lower. 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. The USDA announced 207,000 metric tons of new crop sold to unknown. On the March contract support is the lower Bollinger Band at $3.75 with trade fading through the 20-day at $3.85. Soybeans Soybeans trade is 1 to 3 cents higher at midday with trade bouncing back from the post-attack selling, but not able sustain buying either with fresh bullish news lacking. Meal is narrowly mixed, and oil is flat to 10 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 $9.38 with resistance at the $9.64 upper Bollinger Band. Wheat Wheat trade is 3 cents lower to 3 cents higher with Kansas City retaking the lead at midday as we continue to build better support within the upper part of the range. Cold threats remain limited for the plains with a system potentially moving in next week, with little snow cover currently. Spread action is narrower, putting Kansas City at a 73 cent discount to Chicago, while Minneapolis is back to a 6 cent discount. The March Kansas City chart support is the 20-day moving average at $4.65, 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.