DTN Midday Grain Comments 02/03 10:39

DTN Midday Grain Comments 02/03 10:39 Grain Futures Seeing Red Midday Friday Corn trade is flat to 1 cent lower, beans are 6 to 8 cents lower and wheat trade is 6 to 10 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is flat to 1 cent lower, beans are 6 to 8 cents lower and wheat trade is 6 to 10 cents lower. The U.S. stock market is mixed with the Dow up 75 points. The U.S. Dollar Index is 0.80 higher. Interest rate products are weaker. Energies are mixed with crude up $0.20 and natural gas off $0.08. Livestock trade is mixed with hogs leading. Precious metals weaker with gold down $50.00. CORN: Corn trade is flat to 1 cent lower at midday Friday with trade fading into nearby support levels and slightly weaker spread action as early day session strength fading once again. Ethanol margins have support from natural gas while blender margins tighten again with the recent fade in unleaded values, but spring blends will boost margins soon. Crop development will continue to be watched with drier weather short term in Argentina and early double crop planting in Brazil to expand rapidly in coming days. The daily export wire was silent for corn all week. Basis has stabilized in the west with above average action holding up overall. On the March chart, support is at the $6.73 20-day moving average, which we are testing at midday with the upper Bollinger Band at $6.93 the next round up, which we have faded from last week with a fresh high for the move being scored at $6.88 3/4, which we tested Thursday. SOYBEANS: Soybeans are 6 to 8 cents lower with expanding Brazil harvest and short-term dryness in Argentina while nearby U.S. demand appears to have slowed down a bit this week. Meal is $2.50 to $3.50 higher and oil is 1.55 cents to 1.65 cents lower. The daily export wire saw 132,000 metric tons soybeans sold to unknown for new crop. Trade will be looking for the Brazil export pace to pick up soon as harvest expands further, while Argentina will be watched for further deterioration. Basis remains mostly sideways near term. March chart support is at the $15.13 20-day, which we remain solidly above, with the upper Bollinger Band at $15.49. WHEAT: Wheat trade is 6 to 10 cents lower at midday with KC the downside leader as trade once again tested resistance early in the session before fading, with spread trade remaining solid. The Southern Plains should show improvement temperature wise with the best rain shots for the eastern plains, and little change to the Europe and Black Sea situation short term. Matif wheat values are flat but holding up better than U.S. values so far. On the chart, KC March has support at the 20-day moving average at $8.48, which we are solidly above, with the recent high at $8.95 as resistance with the upper Bollinger Band at $8.92. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.