DTN Midday Grain Comments 02/08 11:29

DTN Midday Grain Comments 02/08 11:29 Soybeans Higher at Midday Trade is mostly higher at midday with light upside momentum. 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 24 points lower. Energies are higher with crude up 0.30. Livestock trade is mixed with hogs higher and cattle lower. Precious metals are higher with gold up $36. CORN Corn trade is fractionally higher at midday and near the daily high of a very slow session; the trading range has only been 3 cents. The gains yesterday have us within a few pennies of the 6-month higher. Spillover support from beans is noted at midday. The weekly EIA report has ethanol up 2 to 3 cents a gallon which is giving midday support. Stocks were up though, up 0.98% on the week with production down .57% on a 7% increase in gasoline usage week over week. The February USDA World Agricultural Supply and Demand Estimates are due out in about 24 hours. This is not getting talked about as a major report, but this is when some small unexpected change could give us some volatility. The domestic carryout is expected to come in slightly lower at 2.335 billion versus 2.355 billion bushels on the January report. On the March corn chart support is the 10-day and 20-day at $3.64 with the $3.71 recent high chart resistance. SOYBEANS Soybean trade is 8 to 12 cents higher at midday with nearby stronger versus new crop. Meal is up $3.50 and bean oil is up 50 points. The trade is looking for a slight reduction in the domestic carryover tomorrow; down to 410 million bushels versus 420 on the January report. China should continue to be active this week. The wet areas of South American are expected to stay wet, with drier areas catching some rain again at the end of the week. November soybeans continue to hold above $10 and are now back above all major moving averages with the 20-day at $10.19 the highest which is chart support. March beans are also above its 20-day at $10.47 which is bringing in some chart buying at midday. The $10.80 six-month high printed last month is the next major notable resistance area, so let's not be surprised to see some volatility this afternoon. WHEAT Wheat trade is a penny lower on Chicago, a penny higher on Kansas City and 2 higher on Minneapolis at midday in slow trade. The dollar bounced back yesterday and remains above 100 this morning. The trade is not looking for the USDA report to do much but remind everyone of large stocks, but if a trend of reducing the carryovers could get started, that may help the bull argument this month. The western belt is still short moisture. The report is expected to have the domestic carryout at 1.179 billion bushels versus 1.186 last month. 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 Advisor. 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.