DTN Midday Grain Comments 02/11 10:54

DTN Midday Grain Comments 02/11 10:54 Grains Trending Lower at Midday Corn is flat to 2 cents lower at midday, soybeans are 1 to 2 cents lower, and wheat 1 to 3 cents lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow up 30. The dollar index is 5 points lower. Interest rate products are firmer. Energies are flat with crude up $0.55. Livestock trade is mostly lower. Precious metals are mixed with gold down $11.30. CORN Corn trade is flat to 2 cents lower at midday in choppy pre-report action as well remain at the lower end of the range. The WASDE report that is out at 11 a.m., is expected to show domestic carryout at 1.864 billion bushels, in line with the last month's number. Ethanol margins remain soft, with the energy complex remaining weak, narrowing blender margins along with producer margins as we get closer to spring driving season with flat futures to start the week. Corn basis remains steady to firm, with little change in recent days but more open weather should help movement. Argentina has gained competitiveness vs. the U.S. in recent days. On the March contract support is the lower Bollinger Band and the fresh lows at $3.75, then the $3.71 four-month low, with resistance at the $3.94 recent 2 1/2 month high with the 20-day just above the market at $3.84. SOYBEANS Soybean trade is 1 to 3 cents lower at midday ahead of the report with choppy trade continuing as buying keeps drying up at the upper part of the last two week's range. Meal is $1.00 to $2.00 lower, and oil is 10 to 20 points higher. The WASDE report is expected to show carryout at 443 million bushels, down from 475 mb last month. South America continues to make good progress with weather and harvest moving forward with little change on the horizon. The Brazilian real remains very cheap as well hurting U.S. export competitiveness near term, but is up slightly this a.m. after a long losing streak. The March soybean chart support is the $8.57 lower Bollinger Band, with resistance the 20-day at $8.98. WHEAT Wheat trade is flat to 4 cents lower with Minneapolis holding up better with spread unwinding before flattening in the day session. The WASDE report is expected to show wheat carryout at 954 million bushels, down just slightly from last month. Weather threats for the plains remain limited near term domestically with limited short term moisture across most of the plains. KC is at an 78-cent discount to Chicago, over a dime off the recent highs, while Minneapolis is back to a 15-cent discount with mostly steady action this week. World values remain mostly elevated with Chicago wheat expensive, and Kansas City wheat on the low end and Egypt expected to return for tenders soon. The March Kansas City chart support the lower Bollinger Band at $4.58, with resistance the 20-day at $4.80. 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 him on Twitter @davidfiala (AG) Copyright 2020 DTN/The Progressive Farmer. All rights reserved.