DTN Midday Grain Comments 02/13 10:56

DTN Midday Grain Comments 02/13 10:56 Corn, Beans Lower at Midday Wheat is the midday leader with row crops fractionally lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 60 points higher. The interest rate products are firmer. The dollar index is 27 points higher. Energies are firmer with crude up $1.10. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up $1.20. CORN Corn trade is flat to 2 cents lower with trade working a narrow range during the day session far after lightly positive overnight trade. The second crop in Brazil is being planted in good condition for now with planting heading towards the halfway point with early rains looking to be good for germination. The weekly ethanol report showed production rebounding sharply to run ahead of year ago levels, with stocks down another 400,000 barrels, with ethanol futures moving back up to $1.33. Corn basis should firm again with more weather disruptions. On the March chart trade is back into the resistance clustered at $3.77-$3.79, with support at the lower Bollinger band at $3.73 3/8, and the then low at $3.71 3/4. SOYBEANS Soybean trade is 1 to 2 cents lower at midday with trade continuing to work the recent range with little fresh news. Meal is flat to $1.00 lower and oil is 10 to 20 points lower. South America weather should maintain the recent pattern in the coming days. Crush margins remain strong with meal holding $300 a ton or better still, with basis likely to remain steady to firmer on weather and the futures pull back. More private sources in Brazil continue to migrate production towards the 112 million metric tons area with CONAB at 115 million metric tons, but a downward bias to their reports. Trade talks are underway in China. On the March chart support is now the moving averages clustered at $9.13-9.15 and resistance the upper Bollinger band at $9.29. WHEAT Wheat trade is flat to 6 cents higher at midday with trade being led by Minneapolis with firmer spread trade again. The U.S. has seen better export business lately, with a focus on further nearby business with some basis moves into export channels. The dollar rally has paused today at the top end of the range. Cold weather is expected to keep some stress on the plains in the near term with winter wanting to hang around. On the March Kansas City chart support is low at $4.87 1/2 with resistance the 10,20, and 50-day moving averages clustered at $5.01-5.04. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.