DTN Midday Grain Comments 02/01 11:04

DTN Midday Grain Comments 02/01 11:04 All Grains Higher at Midday Soybeans lead broadly firmer trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 130 points higher. The interest rate products are firmer. The dollar index is 13 points lower. Energies are firmer with crude up $0.80. Livestock trade is mostly higher. Precious metals are flat to lower with gold down $2.30. CORN Corn trade is 2 to 3 cents higher at midday with trade following the lead of soybeans with another round of export commitments by China. The trade is focused on USDA numbers expected next week and no major changes in South American weather nearby. Ethanol margins remain poor, with futures remaining near the lows although they have gotten back to $1.30 for the first time in awhile, while blender margins are getting a boost from the strength in unleaded. Basis has remained flat to firmer with weather slowing movement. On the March chart support is the multiple moving averages at the $3.77-3.79 area which we are just above, with resistance the upper Bollinger Band at $3.84. SOYBEANS Soybean trade is 7 to 9 cents higher at midday with the commitment of China to buy another 5 million metric tons of U.S. origin boosting trade, but we have faded back from the 15 cent higher trade early on. Meal is $4.00 to $5.00 higher, and oil is 20 to 30 points lower. South America weather looks to continue to drift towards improving next week with harvest continuing to build in Brazil. Crush margins remain strong overall, with the flat basis pattern continuing. On the chart, March trade is just below the upper Bollinger Band at $9.34, with the 200-day at 9.20 remaining support. WHEAT Wheat trade is 4 to 6 cents higher at midday with trade following the row crops this morning with nearly oversold conditions hanging around, with a couple positive finishes needed. Southern Hemisphere harvest will continue in the near term. North American winter wheat areas have snow cover, which is why the extreme cold did not boost trade with another warm up and cool down coming. Trade will continue to watch Mediterranean area tenders for direction the export market. On the March Kansas City chart, support is the lower Bollinger Band at $4.92, and resistance the 50-day at $5.02, which we are above at midday. 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 (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.