DTN Midday Grain Comments 02/07 10:50

DTN Midday Grain Comments 02/07 10:50 Corn, Beans Trade Lower, Wheat Mixed at Midday Wednesday Corn trade is 4-5 cents lower. Beans are 14-16 cents lower and wheat trade is 2 cents lower to 2 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer at midday Wednesday with the S&P 30 points higher. The dollar index is 10 points lower. The interest rate products are mixed. Energies have crude up .30 and natural gas is .04 lower. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold 5.00 higher. CORN: Corn trade is 4-5 cents lower at midday with trade falling to fresh lows with soft spread action and large volume as the index roll gets going with trade briefly firming back to unchanged before fading again during the day session. Ethanol margins should find support with signs of increased driving demand with the warmer February weather so far, along with spring blends phasing in as we head towards March with the weekly report showing production continuing to rebound with production up 42,000 barrels per day, with stocks up 509,000 barrels after the big draw last week. South American weather pattern remains in line with recent days with rains expected for the recently dry areas to end the week. The daily wire was busy today with weekly export sales expected to be in the 600,000 to 900,000 metric ton (mt) range tomorrow. Basis will likely see some pressure as movement picks up with the improved weather. On the March chart, the 20-day at $4.47 3/4 is nearby resistance with the lower Bollinger Band at $4.35 just above the $4.32 3/4 fresh low as support. SOYBEANS: Soybean trade is 14-16 cents lower at midday with trade seeing pressure in meal again as we fade back to the lower end of the range with mixed spread action overall. Meal is 6.50 to 7.50 lower and oil is 15 to 25 points higher. The short-term weather pattern in South America should bring relief to the recently dry southern areas in the next couple of days while early harvest continues to expand pressing basis in Brazil. The daily wire was quiet today with weekly sales expected to be in the 350,000-550,000 mt range tomorrow with meal leading on the product side. Basis should remain flat short term domestically. March soybeans have resistance at the 20-day moving average of $12.15 1/2. The $11.7891/2 fresh low is nearby support with the lower Bollinger Band just above that at 11.81. WHEAT: Wheat trade is 2 cents lower to 2 cents higher at midday with spread action holding steady to firmer again with pressure from the row crops and little other fresh wheat specific news. The Plains will see warmer-than normal temps persist into midmonth before cooling again. Matif wheat remains have faded back to the lows, and the dollar has pulled back a little but remains just off the recent highs. Weekly export sales are expected to be in the 200,000-450,000 mt range tomorrow. On the KC March chart, resistance is at the 20-day moving average at $6.17 which we are just above at midday. Support is the lower Bollinger Band at 5.97. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2024 DTN, LLC. All rights reserved.