DTN Midday Grain Comments 01/30 11:03

DTN Midday Grain Comments 01/30 11:03 All Grains Lower at Midday The U.S. stock market is weaker with the Dow down 120. The dollar index is 15 points lower. Interest rate products are weaker. Energies are weaker with crude down $0.90. Livestock trade is mostly lower, with hogs down the limit as well. Precious metals are mixed with gold up $10.00. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is 3 to 4 cents lower at midday with broad demand concerns still weighing on the market with overall commodity weakness this morning but the recent range remains intact. The market continues to hold the trading range with funds seemingly wanting to buy on breaks to balance positions with hedging interest noted on rallies. Ethanol margins remain soft, with energy complex testing the lows again today. Corn basis remains steady to firm, with movement getting easier. Corn export sales were strong at 1.234 million metric tons. On the March contract support is the lower Bollinger Band at $3.78 1/2 and then recent lows at $3.77, then the $3.71 four-month low, with resistance at the $3.94 recent 2 1/2 month high. Soybeans Soybeans trade is 9 to 10 cents lower at midday with selling pressure continuing on the demand concerns despite the heavily oversold conditions with a new low scored fractionally. Meal is $2.00 to $3.00 lower, oil is 60 to 70 points lower. South American weather is status quo for the most part, which has the market, at this juncture in the growing season, feeling more comfortable with where production will be with little weather premium in play. The Brazilian ral remains very cheap as well hurting U.S. export competitiveness. Good crush margins are manifesting in product sales with 30,000 metric tons of oil going to Egypt. Weekly export sales were led by products again, with beans at 467,900 metric tons, meal at 438,800 metric tons, and oil at 24,900 of oil. The March soybean chart support is the $8.81 1/4 fresh low, with resistance at the $9.11 10-day moving average. WHEAT Wheat trade is 1 to 7 cents lower at midday with trade fading further into support levels with the broad overall weakness and Minneapolis the midday leader. Cold threats remain limited for the Plains and now that we will be in February next week, the trade sees less chances for winter kill with freeze threats likely to be in April now, if they occur. Kansas City is at an 86-cent discount to Chicago near the top of the recent range, while Minneapolis is back to a 20-cent discount. Russian values remain elevated with trade looking for confirmation of various milling grades to China in the short term. Export sales remain solid at 646,300 metric tons. The March KC chart support is the 200-day at $4.58, with the 50-day at $4.52 below that, with resistance the lower Bollinger Band at $4.71. 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.