DTN Midday Grain Comments 02/03 11:19

DTN Midday Grain Comments 02/03 11:19 Grains Are Trending Lower at Midday The U.S. stock market is firmer with the Dow up 170. The dollar index is 40 points higher. Interest rate products are mixed. Energies are weaker with crude down 1.20. Livestock trade is mixed with hogs the midday leader. Precious metals are weaker with gold down 5.00. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is 3 to 4 cents lower at midday to open the week with trade continuing to work the lower end of the range as markets remain on edge as China returns from the New Year's holiday and coronavirus concerns remain front and center with a new low being scored fractionally. Ethanol margins remain soft, with energy complex still trying to build support and trade looking for exports to ease the domestic oversupply with ethanol futures holding up better than most today. Corn basis remains steady to firm, with movement getting easier with the warmer stretch coming. Weekly export inspections were soft at 562,380 metric tons. On the March contract support is the lower Bollinger Band and the recent lows at $3.76 3/4, then the $3.71 4-month low, with resistance at the $3.94 recent 2 1/2 month high. SOYBEANS Soybeans trade is flat to 2 cents lower with early short covering evaporating again as we remain deeply oversold on demand fears, while new crop must bid for acres soon with November leading at midday. Meal is $2.00 to $3.00 lower, and oil is 5 to 15 points higher. South American continues to make good progress with weather and harvest moving forward. The Brazilian ral remains very cheap as well hurting U.S. export competitiveness. China will be watched to closely to see if they return to the export market this week after the Lunar New Year. Weekly export inspection were strong at 1.355 million metric tons, and 130,000 metric tons were sold to Egypt on the daily wire. The March soybean chart support is the $8.66 lower Bollinger Band, with resistance well above the market at the $9.00 level. WHEAT Wheat trade is 1 to 4 cents lower at midday with trade continuing to chop lower with trade getting back towards oversold conditions. Weather threats for the plains remain limited near term domestically. Kansas City is at a 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. Weekly export inspections were softer at 413,984 metric tons. 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.