DTN Midday Grain Comments 02/01 11:50

DTN Midday Grain Comments 02/01 11:50 All Grains Lower at Midday Soybeans are the downside leader at midday in broadly lower trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed at midday with the Dow futures up 12 points. The interest rate products are higher. The dollar index is 25 lower. Energies are mixed with crude up 0.40. Livestock trade is higher led by cattle. Precious metals are higher with gold 2.00 higher. CORN Corn trade is 1 to 3 cents lower at midday with trade seeing pressure from the weak soybean trade. Ethanol margins are seeing a boost overnight with the rebound in the energy complex and firmer ethanol futures. Basis is expected to remain mostly steady with some locations slipping with increased cash movement on the strength. Export sales were very strong at 1.85 million metric tons sold, with the daily wire very active in recent days. On the March chart support is now the 100-day at $3.57 with the 10-day at 3.56 below that, with the 200-day moving average at $3.76 the highest moving average resistance after the $3.62 1/4 high printed yesterday. SOYBEANS Soybean trade is 14 to 18 cents lower at midday with heavy selling developing at midday with slow exports and potentially improved weather. Meal is $4.50 to $5.50 lower and oil is 15 to 25 points lower. South American weather looks to continue the recent pattern with excessive rain near the early harvesting areas in Brazil, and dryness for the bulk of Argentina. The forecast has hinted at better rain in Argentina in the extended forecast. The Brazilian real remains at the upper end of the range, helping US export values, although the daily export wire has been quiet. Weekly export sales were disappointing for beans at 359,000 metric tons, products were outstanding at 474,800 metric tons of meal, and 58,800 of oil. On the March, support is the 20-day at $9.76 after we broke below the 50-daya t 9.83 this morning. WHEAT Wheat trade is 1 to 5 cents lower with the Minneapolis trade midday leader. The plains look like they stay mostly dry in the near term, with crop conditions likely seeing continued stress, but there were some pop up showers in Kansas. The dollar is just below 89 on the index, with the dollar staying flat after the Fed left rates unchanged for now. The weekly export sales were mediocre at 289,100 metric tons. On the March KC contract, chart support is gap left Tuesday at $4.57 which we touched overnight with the 200-day the next level of resistance at $4.73. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.