DTN Midday Grain Comments 02/12 11:18

DTN Midday Grain Comments 02/12 11:18 Grains Trending Higher at Midday Corn is flat to 2 cents higher at midday, soybeans are 1 to 2 cents higher, and wheat flat to 4 cents higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow up 200. The dollar index is 15 points higher. Interest rate products are firmer. Energies are firmer with crude up $1.20. Livestock trade is mostly higher. Precious metals are mixed with gold up $1.00. CORN Corn trade is 1 to 2 cents higher with light buying so far as we've been able to break out of the range. The WASDE report left domestic carryout unchanged at 1.892 billion bushels, shifting some demand from exports to ethanol, with world stocks at 296.8 million metric tons, down 1 million from last month, and South American production was left unchanged. The weekly ethanol report showed production down 48,000 barrels per day, with stocks up sharply with an 884,000-barrel build. Corn basis remains steady to slightly softer, with little change in recent days but more open weather should help movement. Argentina has gained competitiveness vs. the U.S. in recent days with the export market remaining quiet. On the March contract support is the lower Bollinger Band and the fresh lows at $3.75, then the $3.71 4-month low, with resistance at the $3.94 recent 2 1/2 month high with the 20-day just above the market at $3.83 which we have tested this a.m. SOYBEANS Soybean trade is flat to 2 cents higher with trade still struggling to sustain gains past the upper end of the recent range with a lack of fresh bullish news. Meal is flat to $1.00 higher, and oil is 5 to 15 points higher. The WASDE report showed domestic carryout at 425 million bushels, down 50 from last month, with South American production up 2 million metric tons in Brazil from already expected record levels, with Argentina unchanged, and world stocks at 98.9 million metric tons, up 2.1 million from last month. South America continues to make good progress with weather and harvest moving forward with little change on the horizon. The Brazilian ral remains very cheap as well hurting U.S. export competitiveness near term. The March soybean chart support is the $8.59 lower Bollinger Band, with resistance the 20-day at $8.95. WHEAT Wheat trade is 1 cent lower to 5 cents higher at midday with Chicago leading after leading trade lower yesterday with range bound action continuing. The WASDE report pegged domestic carryout at 940 million bushels, down from 965 million last month, with world stocks at 288 million, down fractionally from last month. Weather threats for the Plains remain limited near term domestically with limited short-term moisture across most of the plains. Kansas City is at a 78-cent discount to Chicago, more than a dime off the recent highs, while Minneapolis is back to a 17-cent discount, losing 4 cents at midday. 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 is the lower Bollinger Band at $4.56, with resistance the 20-day at $4.78. 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.