DTN Midday Grain Comments 01/07 11:09

DTN Midday Grain Comments 01/07 11:09 All Grains Lower at Midday Corn is 1 to 2 cents lower, soybeans are 17 to 19 cents lower, and wheat is 6 to 7 cents lower. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 300. The dollar index is 27 points higher. Interest rate products are weaker. Energies are firmer with crude up $0.30. Livestock trade is mostly higher. Precious metals are firmer with gold down $5.60. CORN Corn trade is 1 to 2 cents lower at midday with two-sided trade at times, with action as much as 7 3/4 cents lower before finding buying, with spread action steady to slightly weaker. Ethanol margins remain soft with the firmer energy complex helping, but corn values and tepid demand remaining major issues. Basis is expected to remain sideways with strength clustered around river locations and some countryside weakness. The daily wire will be watched to see what shows up after the recent spread strength with sales reports limited. Argentina's corn areas are expected to remain dry in the near term with potentially better rains in a few areas short term. Weekly export sales were a bit softer at 748,900 metric tons. On the March contract support is the 20-day at $4.52, with the next level up the upper Bollinger band at $5.04, and the contract high at $5.02 3/4 just below that. SOYBEANS Soybeans are 17 to 19 cents lower at midday with two-sided trade ongoing as well with spread trade weaker, with selling pressure starting to pick up again at midday. Meal is $6.00 to $7.00 lower and oil is 35 to 45 points lower. Basis has started to show pockets of weakness with crush likely to take precedence over shipping from here. Brazil should continue to see better moisture near term with Argentina seeing better rains forecasted short term as well. Weekly export sales were soft at 37,000 metric tons of old crop, 79,000 of new with the first cancelations appearing, with products soft as well at 124,700 of meal, and 3,500 of oil. The March chart has resistance at the fresh high at $13.78 1/4 then the upper Bollinger Band at $13.82, with support the 20-day at 12.52. WHEAT Wheat trade is 6 to 7 cents lower at midday with Kansas City and Minneapolis holding up better so far, and flat to weaker spread action. The dollar remains below 90 on the index, with light strength again today. The plains are expected to see limited moisture with cold scares remaining limited for now. Kansas City is at 43-cent discount to Chicago on the March with active trade continuing, with Minneapolis at -40 as well. Weekly export sales were soft at 275,300 metric tons of old crop, and 6,000 of new. Kansas City March chart support is the 20-day at $5.79, and resistance is the upper Bollinger Band at $6.15. (c) Copyright 2021 DTN, LLC. All rights reserved.