DTN Midday Grain Comments 02/07 10:53

DTN Midday Grain Comments 02/07 10:53 Corn, Soybean Futures Lower at Midday; Wheat Higher Corn futures are 2 to 3 cents lower at midday Tuesday; soybean futures are 4 to 5 cents lower; wheat futures are flat to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents lower at midday Tuesday; soybean futures are 4 to 5 cents lower; wheat futures are flat to 8 cents higher. The U.S. stock market is mixed with the S&P off 2 points. The U.S. Dollar Index is flat. Interest rate products are mixed. Energies are firmer with crude up 2.00 and natural gas up .05. Livestock trade is mixed. Precious metals are mixed with gold up $9.00. CORN: Corn futures are 2 to 3 cents lower at midday with range-bound trade continuing with steady to firmer spread action and nearby support holding. On the WASDE report Wednesday, trade is looking for corn carryout at 1.266 billion bushels (bb) on a range of 1.20 bb to 1.335 bb, with world stocks to decline slightly from last month. Ethanol margins have support from natural gas while blender margins rebound a little with unleaded Tuesday morning. Crop development will continue to be watched with drier weather short-term in Argentina, and early double-crop planting in Brazil to continue to progress slowly, potentially adding support. The daily export wire was quiet after Monday's action. Basis has another round of softening in the central to the west but remains above average. On the March chart, support is at the $6.75 20-day moving average, which we are just above at midday with the recent high at $6.88 3/4 still stiff resistance above the market. SOYBEANS: Soybean futures are 4 to 5 cents lower at midday with trade holding above near-term support as we continue to watch weather and nearby demand, along with pre-WASDE position-squaring. Meal is $9.00 to $10.00 lower and oil is 180 to 190 points higher with crush margins still solid. The daily export wire will need to stay active, but we have been quiet to start the week. On the report, trade is looking for domestic carryout at 211 million bushels (mb) on a range of 176 mb to 230 mb, with world stocks down slightly from last month. Trade will be looking for the Brazil export pace to pick up soon as harvest expands, but it remains slower than usual amid showers to the north, while Argentina will be watched for further deterioration short-term, along with Southern Brazil. Basis remains mostly sideways near-term. March chart support is at the $15.16 20-day moving average, which we are testing at midday, with the Upper Bollinger Band at $15.50. WHEAT: Wheat futures are flat to 8 cents higher at midday with the higher-protein wheats leading, along with firmer spread action at the upper end of the recent range with trade looking to consolidate the recent move higher pre-report. The Southern Plains will warm up with the more significant precipitation remaining to the east with more potential the second week, with little change to the Black Sea short-term. Matif wheat values are firmer as well, helping support action, while the stronger dollar limits upside. On the report, expectations are for carryout at 576 mb, on a range of 557 mb to 612 mb, with world stocks up slightly. On the chart, KC March has support at the 20-day moving average at $8.53, which we are solidly above, with the recent high at $8.95 as resistance with the Upper Bollinger Band at $8.98. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.