DTN Midday Grain Comments 02/06 10:51

DTN Midday Grain Comments 02/06 10:51 Corn, Wheat, Soybean Futures All Lower at Midday Corn futures are 2 to 3 cents lower at midday Monday; soybeans are 10 to 12 cents lower; wheat futures are flat to 8 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents lower at midday Monday; soybeans are 10 to 12 cents lower; wheat futures are flat to 8 cents lower. The U.S. stock market is weaker with the Dow off 45 points. The U.S. Dollar Index is 70 points higher. Interest rate products are weaker. Energies are weaker with crude off .40 and natural gas flat. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold up $3.00. CORN: Corn futures are 2 to 3 cents lower with softer spread action with early strength fading back to support during the day session with little fresh news overall and a soft overall commodity environment. 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 in the coming weeks. Crop development will continue to be watched with drier weather short-term in Argentina, and early double-crop planting in Brazil to expand in coming days; but it has fallen off the ideal pace for now, adding support. The daily export wire showed life with 200,000 metric tons (mt) split between old and new crop to Mexico while Japan secured 118,000 mt. Weekly inspections were off a little at 480,205 mt. Basis has stabilized in the west with above-average action holding up overall. On the March chart, support is at the $6.74 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 just below that still at $6.88 3/4. SOYBEANS: Soybean futures are 10 to 12 cents lower at midday with rangebound action continuing short-term while product action and South American weather continue to provide direction, helping us to fade back toward support levels. Meal is $6.50 to $7.50 lower and oil is 35 to 45 points lower with crush margins still strong as meal fades back from the $500.00 area. Weekly export inspections were solid at 1.830 million metric tons (mmt) pushing us ahead of last year's pace. Trade will be looking for the Brazil export pace to pick up soon as harvest expands, but it remains slower than usual amid showers, while Argentina will be watched for further deterioration short-term. Basis remains mostly sideways near-term. March chart support is at the $15.14 20-day moving average, which we remain just above, with the Upper Bollinger Band at $15.49. WHEAT: Wheat futures are flat to 8 cents lower with KC trade leading as trade fades again from the upper end of the range again with negative spillover from row crops and outside markets. The Southern Plains will warm up with the more significant precipitation remaining to the east, with short-term Black Sea dryness while exports slow on logistical challenges. Matif wheat values are firmer as well, helping support action. Weekly export inspections were OK at 536,355 mt. On the chart, KC March has support at the 20-day moving average at $8.51, which we are solidly above, with the recent high at $8.95 as resistance with the Upper Bollinger Band at $8.97. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.