DTN Midday Grain Comments 02/05 11:31

DTN Midday Grain Comments 02/05 11:31 Bean, Wheat Lower at Midday Trade has firmer back towards flat from light early selling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 140 points higher. The interest rate products are weaker. The dollar index is 25 points higher. Energies are weaker with crude down $0.70. Livestock trade is mostly lower. Precious metals are mixed with gold down $0.60. CORN Corn trade is narrowly mixed at midday with the sideways action continuing. The trade is focused on USDA numbers coming on Friday and no major changes in South American weather into the near term with the beginning of the double-crop season approaching. Ethanol margins remain poor, with futures remaining near the lows although they remain above $1.31, 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 weaker with improved movement. 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 flat to 1 cent lower at midday with sideways trade the rule for the soybeans as well even if we have seen more of an active sideways pattern than corn. Meal is $1 to $2 lower and oil is 5 to 15 points higher. South America weather looks to continue to drift towards improvement in Brazil and Argentina with harvest continuing to move in Brazil. Crush margins remain strong overall, with softer basis as improving weather allows for movement along with the futures hanging in the upper end of the recent range. China is expected set shipping dates for the recent purchases after the current trade deadline, which will to be watched with the USDA confirming another 2.603 million metric tons to China, and 273,000 metric tons to unknown. 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 1 to 3 cents lower as well with wheat trade working to extend the recent breakout higher along with spreads firming in the front months amid the softer futures this morning. The stronger dollar will hang over the market as well. 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. Russian values continue to work higher as well for the export market. On the March KC 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.