DTN Midday Grain Comments 02/03 11:26

DTN Midday Grain Comments 02/03 11:26 Grains Mixed at Midday Corn and beans are lower at midday with wheat firmer due to the weak dollar. By David Fiala DTN Contributing Analyst General Comments The U.S. stock markets are lower with the Dow futures down 50 points. The interest rate products are higher. The dollar index is 135 points lower. Energies are higher with crude up $1.70. Livestock trade is higher. Precious metals are higher with gold up $12. CORN Corn trade is down 2 cents at midday which has us at the daily lows, the overnight up to midday range has only been 3 cents which illustrates the market is very complacent. This is even in the face of a major dollar break today which should limit downside today. The dollar is down at its 100-day moving average and not too far from the three-month low. This could help attract some export business with corn cheaper in dollar terms to world buyers. This is supporting crude, livestock and gold. The weekly EIA numbers showed ethanol stocks increasing by 4.32% on the week with production down .21% and gasoline demand down 6.71% due to weather. This has ethanol futures down around 2 cents at midday which is part of why corn is lower. On the March chart the 50-day moving average is nearby support at $3.67 then the 20-day at $3.63. Resistance is at the $3.73 3/4 high printed Tuesday then the 100-day up at $3.79 1/2. There was some farmer selling around at the new highs for the move which helped stall the upside momentum the past few days. SOYBEANS Soybean trade is 7 cents lower at midday giving back some of our Tuesday gains, meal is down $3.50 and bean oil is up 15 with spillover outside market support. No major changes in South American production weather with some small dry areas noted for our strength yesterday but we found sellers when we poked up to new highs for the move including farmer selling. The USDA monthly World Agricultural Supply and Demand Estimates (WASDE) will be out next Tuesday. That should be a fairly uneventful day, but the good export week to week news for beans could lead to a small usage increase and lower month to month domestic carryover giving beans some support. On the March soybean chart the 20-day at $8.76 is support, with the 100-day at $8.81 back to bean nearby resistance then the $8.89 1/2 six-week high printed on Tuesday. WHEAT Wheat trade is 2 to 4 higher at midday due to the sharply lower dollar. Spillover weakness from corn and beans has wheat 3 cents below the morning highs at midday. Demand concerns continue but the lower dollar creates optimism. Feed usage of wheat will need to tick up worldwide to help stop the growing global wheat stocks on the USDA reports. The winter storm has been bringing beneficial moisture to winter wheat areas and leaving snow cover. On the March Kansas City chart we have nearby resistance at the 20-day moving average, at $4.69 3/4, then the 100-day up at $4.89. Longer term support is the contract low at $4.51. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.