DTN Midday Grain Comments 02/01 10:57

DTN Midday Grain Comments 02/01 10:57 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 9 to 10 cents higher at midday Tuesday; soybean futures are 33 to 35 cents higher; wheat futures are 6 to 11 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is flat with the Dow up 30 points. The U.S. Dollar Index is 11 points lower. Interest rate products are lower. Energies are mixed with crude up .40. Livestock trade is mixed. Precious metals are higher with gold up 11.00. CORN: Corn futures are 9 to 10 cents higher at midday with two-sided trade giving way to stronger action as soybeans provide spillover support again with flat to firmer spread action. Ethanol margins continue to deteriorate in the short term with better demand needed to put a dent in growing stocks. Trade will continue to look for further sales confirmation on the daily wire with 110,000 metric tons (mt) of old crop announced sold to Mexico on Tuesday. Basis should remain rangebound to slightly weaker in the short term, especially at the processors with weather likely to slow short-term movement in some areas. Trade will continue watching South American weather as we head into second-crop planting and development. On the March contract we have support at the 20-day moving average at $6.12; the fresh high scored Monday at $6.42 1/2 is resistance. SOYBEANS: Soybean futures are 33 to 35 cents higher at midday, scoring fresh highs at $15.30 1/2 after early mixed action. South American product estimates continue to decline. There is broad strength in the products with flat to firm spread action as well. Meal is $13.50 to $14.50 higher and oil is 95 to 105 points higher. Basis is expected to remain flat to weaker in the short term. Crush margins are hanging in there with the product strength to start, with meal pushing through $425 a ton. Early harvest in underway in South America, likely to further crimp U.S. export competitiveness in February with mixed, short-term weather. On the March soybean chart, we have resistance at the fresh high at $15.30 1/4, with trade well above the 20-day moving average at $14.12 as support. WHEAT: Wheat futures are 6 to 11 cents higher at midday with spring wheat leading as trade tries to follow the row crops higher after the sharply lower start to the week. The dollar is pulling back further Tuesday, but remains in the upper part of the range. Plains weather has moisture for some in the short term with the crop likely to stay dormant and some areas having better snow cover now. Fresh news from Ukraine and Russia remains limited as well. Spring wheat is firmer versus Chicago, moving the premium to $1.47 on the March, with KC at a 17-cent premium in softer action. KC March chart resistance is the 20-day moving average at $7.89 that we fell below Monday, with further support the Lower Bollinger Band at $7.49. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.