DTN Midday Grain Comments 01/31 10:42

DTN Midday Grain Comments 01/31 10:42 Grains Mixed at Midday The U.S. stock market is weaker with the Dow down 370. The dollar index is 30 points lower. Interest rate products are weaker. Energies are weaker with crude down $0.60. Livestock trade is mixed with hogs sharply lower again. Precious metals are mixed with gold up $3.00. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is 1 to 2 cents higher with two sided trade so far today with better action so far during the day session. The market continues to hold the trading range with support evident still on pull backs, but broader buying remains limited. Ethanol margins remain soft, with energy complex still trying to build support. Corn basis remains steady to firm, with movement getting easier with the warmer stretch coming. The USDA noted 134,000 metric tons of optional origin corn to South Korea. On the March contract, support is the lower Bollinger Band and the 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 2 to 3 cents lower with early short covering evaporating again as conditions remain heavily oversold on headline risk but with support picking up a bit during the day session. Meal is flat to $1.00 lower, and oil is 30 to 40 points lower. South American continues to make good progress with weather and harvest. The Brazilian ral remains very cheap as well hurting U.S. export competitiveness. China is slated to return from the lunar New Year next week, with trade watching for a return to export interest especially for U.S. new crop slots. The March soybean chart support is the $8.73 lower Bollinger Band, with resistance at the $9.11 10-day moving average. WHEAT Wheat trade is flat to 4 cents lower at midday with trade continuing to chop around with trade getting back towards oversold conditions and Chicago generally showing the most strength with nearby inverses persisting. Weather threats for the Plains remain limited near term. Kansas City is at an 90-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. The March Kansas City chart support is the 200-day at $4.58, with the 50-day at $4.52 below that, with resistance the 20-day at $4.85. 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.