DTN Midday Grain Comments 01/09 11:00

DTN Midday Grain Comments 01/09 11:00 Grains Mixed at Midday The U.S. stock market is firmer with the Dow up 205. The dollar index is 20 points higher. Interest rate products are firmer. Energies are mixed with crude down $0.10. Livestock trade is mostly lower with hogs the downside leader. Precious metals are lower with gold $9.10 lower. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is narrowly mixed with two-sided trade on position squaring ahead of the report, and little fresh news. Ethanol margins will see further pressure if the gains in corn are sustained. U.S. weather looks to be more active to the east, allowing for more movement west for now, while South America remains mixed. Basis has remained sideways. Weekly sales are delayed until Friday with the coming winter storm for the D.C. area. On the report, the average yield estimate is 166.2 BPA, for production of 13.513 billion bushels on acres of 81.35 million, with corn stocks at 11.53 billion for a carryout of 1.757 billion. On the March contract support is the lower Bollinger Band at $3.75 with trade testing the 20-day at $3.86 before pulling back. SOYBEANS Soybeans trade is 2 to 4 cents lower at midday with trade hanging around the upper end of the range with the trade deal still in line to be signed next week but buying still struggling to be sustained at the upper end of the range. Meal is $2.00 to $3.00 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 with report China interest in Brazilian beans. 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. On the report, the average estimate is for yield at 46.6 BPA for production of 3.512 billion bushels on 75.462 million acres, with stocks at 3.186 billion and carryout at 424 million bushels. The March chart support is at the 20-day at $9.39 with resistance at the $9.64 upper Bollinger Band. WHEAT Wheat trade is 4 to 11 cents higher with broad buying at midday with moving back towards the upper part of the recent range, with Kansas City a dime away from the $5.00 area nearby. 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 72 cent discount to Chicago, while Minneapolis is back to a 9 cent discount. On the report, trade is looking for an average guess of 30.664 million acres of winter wheat, 1.917 billion bushels of stocks, and carryout of 969 million bushels. The March Kansas City chart support is the 20-day moving average 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.