DTN Midday Grain Comments 02/15 11:30

DTN Midday Grain Comments 02/15 11:30 Soybeans Leading Grains Higher Corn is seeing new highs for the move with soybeans providing spillover support. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 65 points. The interest rate products are lower. The dollar index is 9 points lower. Energies are mixed. Livestock trade is mixed. Precious metals are higher with gold up $1. CORN Corn trade is 2 to 3 cents higher at midday with new highs for the day and move; momentum is flat to higher. Granted the daily range has only been just over a nickel, this is a significant day again. Higher highs and higher lows is an up trending market that attracts fund buying. Basis has softened which has not had cash corn moving higher with the board therefore farmer selling has not slowed this slow upside advance the past week. Outside markets are lightly supportive. The weekly ethanol production report was negative with production 1.42% lower on the week, stocks up 1.88% and gas demand down more than 5%. This has not been a good week for ethanol margins with the deep drop yesterday and follow-through today. The USDA announced 229,000 metric tons 229,000 metric tons sold to Japan. On the March corn chart support is at the $3.70 10-day, then the $3.67 20 and 200-day. Resistance was at $3.76, which we are challenging at midday, then the $3.87 1/2 seven-month high. SOYBEANS Soybean trade is 12 higher on nearby and 7 higher on new crop at midday due to light outside market support and chart buying. Meal is up $4 and bean oil is flat to lower. Rains could return to Argentina this week with Brazil mixed as harvest moves on with isolated harvest disruptions. The firmer Real continues to limit Brazilian export competitiveness which has been supportive for near term US demand. NOPA crush is expected to reflect strong usage for January despite mixed margins. The USDA announced 142,500 metric tons of soybeans sold to Mexico yesterday. These demand items have been supporting the futures overnight up to midday. March beans have support at the 10-day and 20-day moving averages at 10.47. Resistance is at the $10.80 seven-month high. WHEAT Wheat trade is narrowly mixed at midday despite the spillover support from the row crops. Kansas City and Chicago are up a penny and Minneapolis is down a penny. This has the markets hanging onto the gains of the past week, which is positive. The warm stretch will continue to raise concerns about breaking dormancy early, but better rains are expected for much of the belt to potentially ease some of the western dryness concerns. The dollar has moved back above 101 on the index, but remains in the lower end of the range since the election. On the March Kansas City contract support is at the $4.52 200-day then the $4.43 20-day. Resistance is at the new high reached on Monday at $4.68 1/4. 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.