DTN Midday Grain Comments 02/07 11:35

DTN Midday Grain Comments 02/07 11:35 Corn, Beans Higher at Midday; Wheat Mixed Trade is mostly higher at midday, with trade backing off early strength. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 35 points. The interest rate products are mostly higher. The dollar index is 45 points higher. Energies are lower with crude down 0.90. Livestock trade is higher. Precious metals are mixed with gold up $3.50. CORN Corn trade is flat to 2 cents higher at midday with two-sided trade this morning as trade has backed away from the higher end of the range. Wet weather should slow early double-crop planting in Brazil but major concerns are limited for now. Ethanol margins improved to start the week, but remain very soft, although ethanol futures have edged forward again today. The February USDA World Agricultural Supply and Demand Estimates are due out Thursday, and then we will have the USDA Outlook Forum at the end of the month as news to look forward to. The domestic carryout is expected to start in the 2.3-2.4 billion bushel range. On the March corn chart, support is the 10-day and 20-day at $3.63 which we held overnight, with the 200-day resistance at $3.68 which was tested this morning, then the $3.71 recent high. SOYBEANS Soybean trade is 1 to 4 cents higher with trade firming again during the day session after failing to hold the highs overnight and again early in the day session. Meal is $2 to $3 higher and oil is 25 to 35 points lower. China has seen active trade as they have returned from holiday. The wet areas of South American are expected to stay wet, with drier areas catching some rain again at the end of the week. The WASDE report is expected to have domestic carryout around 400-415 million bushels. November soybeans continue to hold above $10. On the March soybean chart futures we are just above the 20-day at $10.39, and trying to hold it to the end of the session. It is nearby resistance then the $10.42 10-day. Support is at the $10.35 50-day, then the $10.16 200-day moving average. WHEAT Wheat trade is mixed at midday with Chicago trade leading this morning while the Minneapolis contract slips nearby. The dollar has bounced back above 100 this morning with trade looking to hold the rally today after failing yesterday. The western belt is still short moisture with well-above-normal temperature on deck which is limiting downside with lower spring wheat acreage expected due to low prices, although some moisture is expected in the extended forecast for the Southwest. The report is expected to keep domestic carryout over 1.0 billion bushels. On the March Kansas City contract support is at the 50-day at $4.25 with resistance at the $4.40 20-day. 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 Fiala on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.