DTN Midday Grain Comments 02/05 10:56

DTN Midday Grain Comments 02/05 10:56 Grains Mixed at Midday The U.S. stock market is firmer with the Dow up 315. The dollar index is 30 points higher. Interest rate products are firmer. Energies are firmer with crude up $1.80. Livestock trade is weaker with early gains fading yet again. Precious metals are firmer with gold up $7.00. By David Fiala DTN Contributing Analyst General Comments CORN Corn trade is 2 to 3 cents lower at midday with early buying fading again keeping action in the lower part of the range. Ethanol margins remain soft, with support from the energy complex this a.m., and the weekly report showing at 52,000-barrel-per-day production increase, and stocks down 770,000 barrels with ethanol futures remaining flat with the market still well supplied short term. Corn basis remains steady to firm, with movement possible slowed again with some snow moving through. On the March contract support is the lower Bollinger Band and the recent lows at $3.76 3/4, then the $3.71 four-month low, with resistance at the $3.94 recent 2 1/2 month high with the 20-day just above the market at $3.85. SOYBEANS Soybean trade are narrowly mixed at midday with the early short covering evaporating again after strong overnight action. Meal is flat to $1.00 lower, and oil is 35 to 45 points higher. South America continues to make good progress with weather and harvest moving forward with some concerns about excess rains in Northern Brazil. The Brazilian ral remains very cheap as well hurting U.S. export competitiveness near term, with their values sliding and nearby offers well under U.S. values for spring time slots while the daily wire has been quiet this week. The March soybean chart support is the $8.60 lower Bollinger Band, with resistance well above the market at the $9.00 level. WHEAT Wheat trade is flat to 2 cents higher with trade clinging to gains at midday with spillover support from the row crops evaporating. Weather threats for the plains remain limited near term domestically. Kansas City is at a 91-cent discount to Chicago near the top of the recent range, while Minneapolis is back to a 28-cent discount. World values moderated a bit to start the week with Russia likely to remain in focus. The March Kansas City chart support the lower Bollinger Band at $4.62, with resistance the 20-day at $4.84. 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.