DTN Midday Grain Comments 02/04 11:37

DTN Midday Grain Comments 02/04 11:37 Grain Trade Mildly Mixed at Midday Soybeans lead lightly firmer trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat with the Dow 5 points higher. The interest rate products are firmer. The dollar index is 29 points higher. Energies are weaker with crude down $1.00. Livestock trade is firmer. Precious metals are mixed with gold down $3.40. CORN Corn trade is flat to a penny higher in quiet midday trade to open the week. The trade is focused on USDA numbers expected next week and no major changes in South American weather into the near term. Ethanol margins remain poor, with futures remaining near the lows although they have gotten back above $1.32, while blender margins are getting a boost from the strength in unleaded with spring blending demand just around the corner. Basis has remained flat to firmer with weather slowing movement. Weekly export inspections were inline with recent weeks at 901,214 metric tons. On the March chart support is at the $3.77 3/4 100-day moving average, then the $3.73 lower Bollinger Band. Resistance is at the nearby trendline resistance at $3.82, the $3.87 200-day moving average. SOYBEANS Soybean trade is 3 to 5 cents higher at midday as well with trade looking for more confirmation of recent China business with 612,000 metric tons on the morning wire as well as continued focus on South American weather. Meal is flat to $1 lower and oil is 10 to 20 points higher. South America weather looks to continue to drift towards improvement in Brazil and Argentina with harvest continuing to build in Brazil. Crush margins remain strong overall, with the flat basis pattern continuing. China is expected to set shipping dates for the recent purchases after the current trade deadline, which will to be watched. Export inspections were inline with expectations at 975,775 metric tons. On the March chart resistance is at the $9.31 high printed Friday, then the $9.41 area where we find the seven-month high. Support is at the $9.14 20-day then the $8.96 100-day moving average. WHEAT Wheat trade is mixed at midday after the strong finish Friday, with another good close needed to give us some chart momentum, and winter wheat is leading so far. 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 colder air working back this week. Weekly export inspections were off a little bit at 440,031 metric tons. On the March Kansas City chart support is the 50-day at $5.02, with resistance the upper Bollinger Band at $5.14. 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.