DTN Midday Grain Comments 02/04 10:56

DTN Midday Grain Comments 02/04 10:56 Corn, Soybeans, Wheat all Higher at Midday Corn futures are 1 to 2 cents higher at midday Friday; soybean futures are 2 to 3 cents higher; wheat futures are 3 to 9 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow down 160 points. The U.S. Dollar Index is 15 points higher. Interest rate products are weaker. Energies are firmer with crude up 2.00. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up 1.00. CORN: Corn futures are 1 to 2 cents higher at midday with early strength fading and a slight carry re-emerging in the front months and spillover limited from soybeans. Ethanol margins continue to deteriorate in the short term with better demand needed to put a dent in the growing stocks with ethanol values the weakest since April. Trade will continue to look for further corn sales confirmation on the daily wire, which was quiet Friday. Basis should remain rangebound to slightly weaker in the short term, especially at the processors with weather likely to slow movement in some areas. Trade will continue watching South American weather as we head into second-crop planting and development; also, new-crop strength in soybeans may swing acres late. On the March contract we have support at the 20-day moving average at $6.13, which we have bounced off again this morning, then the fresh high scored Monday at $.42 1/2 as resistance. SOYBEANS: Soybean futures are 2 to 3 cents higher as trade tested the highs again overnight before fading with spread action remaining strong as the front months near an inverse. Meal is $4.00 to $5.00 higher and oil is 10 to 20 points lower. Basis is expected to remain flat to weaker in the short term with weather slowing movement as well. Crush margins have struggled this week with product action taking turns leading. The daily wire showed 295,000 metric tons (mt) of soybeans sold to unknown. Early harvest in underway in South America, likely to further crimp U.S. export competitiveness in February with mixed short-term weather with Argentina looking to get the shorter end of rains in the next couple of weeks. On the March soybean chart, we have resistance at the fresh high at $15.64, with trade well above the 20-day moving average at $14.38 as support. WHEAT: Wheat futures are 3 to 9 cents higher at midday with KC wheat leading as trade continues to work back from the lower end of the range with less support from the row crops. There is little fresh other bullish news as Russia eases some export limits but support from spread unwinding. The dollar has faded back to the middle part of the range, which should add support. Better cover should be in place over some of the Southern Plains after the winter storm with a bit of time until we exit dormancy with Black Sea area moisture improving as well. Fresh news from Ukraine and Russia remains limited on the political front. Spring wheat is flat versus Chicago, keeping the premium to $1.52 on the March, with KC at a 21-cent premium in firmer action. KC March chart resistance is the 20-day moving average at $7.86, which we are fading back from, with further support the Lower Bollinger Band at $7.45. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.