DTN Midday Grain Comments 02/07 11:36

DTN Midday Grain Comments 02/07 11:36 Grains Mixed at Midday Row crops are off their highs with trade around unchanged at midday, with wheat remaining higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher at midday with the Dow futures up 260 points with exceptional volatility continuing. The interest rate products are mixed. The dollar index is 55 higher. Energies are lower with crude down 1.22. Livestock trade is mixed with cattle leading. Precious metals are lower with gold 4.40 lower. CORN Corn trade is flat at midday with trade pulling back from fresh highs scored this morning. The weekly ethanol production report showed production and stocks rebounding, along with gasoline demand, ethanol futures are lower at midday. Basis is expected to remain mostly steady with trade still digesting the milo basis break in the west. The daily wire was quiet today, but we are seeing more business likely getting done to the usual buyers. On the March chart support is now the 100-day at $3.57 with the 20-day at 3.55 below that, with the 200-day moving average at $3.76 the highest moving average resistance after the $3.66 upper Bollinger band. SOYBEANS Soybean trade is flat to 2 cents lower at midday with trade seeing active trade so far. Meal is $2 to $3 higher and oil is 55 to 65 points lower. South American weather is expected to keep Brazil wet and Argentina drier until the end of the week, when rains are expected to tick up but the extended forecast leans drier and cooler for Argentina. The Brazilian real has slipped vs. the dollar in recent days, likely keeping the export pace restrained, especially with early Brazilian beans now starting to come out. On the March, support is the weekly low at $9.67, with the 20-day above that at $9.77 with resistance at the 100-day at 9.88 which we are testing overnight. WHEAT Wheat trade is flat to 5 cents higher at midday with winter wheat being the leader. The Plains look like they stay mostly dry in the near term, with some light snow falling in SW Kansas yesterday. The extended forecast may have some relief, but overall continues to look limited for the hard red wheat areas with spring drawing closer. The Black Sea area has seen some stressful weather for winter as well with little protective cover. The dollar is just above 90 on the index, with trade mostly holding gains even with the variability in the outside markets. Jordan pulled their wheat tender on higher prices again. On the March Kansas City contract, chart support is the overnight low at 4.55 with the 200-day the next level of resistance at $4.73 which we are above at midday. 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.