DTN Midday Grain Comments 02/08 10:46

DTN Midday Grain Comments 02/08 10:46 Beans Trade Higher, Corn, What Trade Lower at Midday Thursday Corn trade is 2 to 3 cents lower; beans are 8 to 10 cents higher and wheat trade is 11 to 15 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed at midday with the S&P 5 points lower. The dollar index is 22 points higher. The interest rate products are weaker. Energies have crude up 1.85 and natural gas is .05 lower. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold 9.00 lower. CORN: Corn trade is 2-3 cents lower with two sided trade early on turning weaker as we scored a fresh low yet again as we head towards today's WASDE report with oversold conditions. On the report, trade is looking for carryout at 2.148 billion bushels vs. 2.162 last month, and Brazil production down by 2.4 million metric tons, and Argentina rising by 600K metric tons. Ethanol margins should find support as we push closer to spring driving demand along with improved near term demand with the improved weather and firming unleaded values. South American weather pattern remains inline with recent days with rains expected to continue short term for the recently dry areas into the weekend. The daily wire saw 200,000 metric tons sold to Colombia with weekly sales solid again at 1.219 million metric tons. Basis will likely see some pressure as movement picks up ahead of the March contract going into expiration. On the March chart the 20-day at $4.44 3/4 is nearby resistance with the Lower Bollinger Band at $4.34 just above the $4.31 1/2 fresh low as support. SOYBEANS: Soybean trade is 8-10 cents higher at midday with oil continuing to lead the product complex as we head towards the report with oversold conditions still in place. Meal is narrowly mixed, and oil is 95 to 105 points higher. On the WASDE report, trade is looking for carryout at 284 million bushels vs. 280 last month, with Brazil production falling by 3.4 million metric tons from last month, and Argentina up by 900K metric tons. 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 remaining soft at 340,800 metric tons of beans, 284,400 of meal, and 1,200 of oil. Basis should remain flat short term domestically. The March soybeans has resistance at the 20-day moving average at $12.13 1/2. The $11.78 1/2 fresh low is nearby support with the lower Bollinger Band just above that at 11.80. WHEAT: Wheat trade is 11-15 cents lower at midday with trade fading back to the low end of the range again with spread action remaining steady with the dollar limiting upside again along with fresh lows in Euro trade as Russian offers continue to get cheaper. On the WASDE report trade is looking for carryout at 648 million bushels, unchanged on the month with world supplies to edge slightly higher. The plains will see warmer than normal temps persist into midmonth before cooling again. Weekly export sales improved slightly at 378,400 metric tons. On the KC March Chart, resistance is at the 20-day moving average at $6.17 which we retreated from after closing higher yesterday. 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.