DTN Midday Grain Comments 02/08 11:01

DTN Midday Grain Comments 02/08 11:01 Grains Mixed at Midday Winter wheat is softer pre-report, with row crops flat to higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower at midday with the Dow futures down 445 points with exceptional volatility continuing. The interest rate products are mostly higher. The dollar index is 5 higher. Energies are lower with crude down 0.85. Livestock trade is mostly lower. Precious metals are higher with gold 4.50 higher. CORN Corn trade is flat to 1 cent higher ahead of the report with quiet action as trade keeps pushing into resistance. Ethanol margins continued to get squeezed by the energy complex pulling back, firmer corn values, with ethanol futures slightly higher this a.m. Basis is expected to remain mostly steady with the milo break settling down. The daily wire was quiet today, but we seeing more business likely getting done to the usual buyers with weekly sales strong again at 1.77 million metric tons. On the WADSE report, trade is expected carryout at 2.458 billion bushels, world stocks at 203.8 million metric tons, with Brazilian production at 92.7 million metric tons, and Argentina at 40.4 million metric tons. 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 5 cents higher with trade continuing to work around the middle of the range. Meal is $1.50 to $2.50 higher and oil is flat to 10 points higher. South American weather is expected to keep Brazil wet, 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. Weekly sales remained mediocre at 743,200 metric tons of beans, 160,800 of meal, and 7,800 of oil. On the WASDE report, domestic carryout is expected to come in at 496 million bushels, world stocks at 98.7 million metric tons, Brazil production at 111.6 million metric tons, and Argentina at 53.6 million metric tons. 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 tested before setting back. WINTER Winter wheat trade is 5 to 8 cents lower with trade pulling back this morning, with spring wheat flat to higher, with generally better action during the day session. The plains look like they stay mostly dry in the near term, with normal to warmer weather later part of the month expected. 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. Weekly export sales were soft at 393,400 metric tons. On the WASDE report, domestic carryout is expected to be 989 million bushels, and world stocks at 267.5 million metric tons. On the March Kansas City contract, chart support is the 200-day at $4.72 after trade moved over it Wednesday, with the upper bollinger band just above the market at $4.82. 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.