DTN Midday Grain Comments 02/04 11:29

DTN Midday Grain Comments 02/04 11:29 All Grains Lower at Midday Grain trade is weak at midday despite continued dollar weakness. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed. The interest rate products are higher. The dollar index is 70 points lower. Energies are mixed with crude down 30 and unleaded 2 cents higher. Livestock trade is mixed. Precious metals are higher with gold up $13. CORN Corn trade is 2 lower at midday after trading a few higher early on. The weekly export sales were just above the range of expectations at 1.129 million metric tons giving the market a light fundamental news boost. The continued weakness in the dollar is a friendly item for exports if it continues. At midday the dollar is below the 200-day and lowest major moving average and at the lowest level since October. The action up to midday appears as though the trade wants to keep corn range bound within our three week range going into the USDA report next Tuesday. 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. SOYBEANS Soybean trade is 3 cents lower at midday after trading 6 higher overnight. Meal is down $2.50 and bean oil was 13 higher. The weekly export sales were a marketing year low which has limited upside this morning despite the weak dollar. Sales were a net reduction of 43,600 tons due to cancelations. Meal sales were okay at 186,300 tons and bean oil 12,800 tons. The USDA monthly World Agricultural Supply and Demand Estimates ("WASDE") will be out next Tuesday. Action today illustrates that range-bound trade will continue for the next few sessions until we get to that report. The South American weather story remains uneventful. On the March soybean chart the 20-day at $8.75 1/2 is support which we are near at midday, then the low last week at $8.67. The 100-day at $8.81 is nearby resistance then the $8.89 1/2 six-week high printed on Tuesday. WHEAT Wheat trade is nearly a dime below the overnight highs with trade 4 to 6 cents lower at midday. The dollar weakness continues and should limit downside, but the weekly sales number was bearish this morning. The sales number was 66,200 metric tons, which was a marketing year low. On the USDA report next Tuesday the wheat feed usage will need to tick up worldwide to help stop the trend of growing global wheat stocks on the USDA reports. Big supplies are behind not only our currently lower prices but expectations for low prices in the year ahead. Based on the export news the bias may be toward a reduction in the export number and slight increase in the domestic carryover. 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. We have slipped to a three-week low at midday. 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.