DTN Midday Grain Comments 02/07 10:55

DTN Midday Grain Comments 02/07 10:55 Grain Futures Shooting Higher Midday Monday Corn trade is 15 to 16 cents higher, beans are 30 to 32 cents higher and wheat is 7 to 11 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is flat with the Dow down 20 points. The dollar index is 5 points lower. Interest rate products are mixed. Energies are mixed with crude down $0.60. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up $10.00. CORN: Corn trade is 15 to 16 cents higher at midday Monday, gapping higher on the open and pushing towards the session highs at midmorning with spread action remaining flat to softer up front and spillover continuing to come over from the soybeans. Ethanol margins continue to deteriorate short term with better demand needed to put a dent in the growing stocks, with ethanol values the weakest since April and driving demand still soft. Trade will continue to look for further sales confirmation on the daily wire, with nothing to start the week. Basis should remain rangebound to slightly weaker short term, especially at the processors with weather likely to allow for better movement this week. Trade will continue watching South American weather as we head into second crop planting and development along with new crop strength in soybeans to swing acres late. Weekly export inspections remained rangebound at 1.503 million metric tons inspected. On the March contract, we have support at the 20-day moving average at $6.15 then the fresh high scored last Monday at $6.42 1/2 as resistance. SOYBEANS: Soybean trade is 30 to 32 cents higher at midday with a gap higher move on further South American production concerns and another set of fresh highs scored yet again along with firmer spread trade. Meal is $9.00 to $10.00 higher and oil is 0.15 cent to 0.25 cent higher. Basis is expected to remain flat to weaker short term with the active board trade. Crush margins continue to be supported by meal gains with flatter oil action. The daily wire was active last week, with another 508,000 metric tons hitting the daily wire Monday, split between old and new crop. Early harvest in under way in South America, likely to further crimp U.S. export competitiveness in February with mixed short-term weather, with the southern growing areas looking to get the shorter end of rains in the next couple of weeks. Weekly export inspections remain range bound at 1.218 million metric tons as we get closer to the end of major shipping season. On the March soybean chart, we have resistance at the fresh high at $15.89 1/2, with trade well above the 20-day at $14.46 support. WHEAT: Wheat trade is 7 to 11 cents higher at midday with Chicago wheat leading as trade continues to work back from the lower end of the range with support from profit taking versus shorts and a rebound in row crops. The dollar has faded back to the middle part of the range, which should add support if sustained. Better cover should be in place over some of the Southern Plains after the winter storm with warmer weather short term 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 1.49 cents on the March, with KC at a 21-cent premium in soft action. Weekly export inspections improved at bit at 417,750 metric tons. KC March chart resistance is the 20-day at $7.88 which we are just above, with further support the lower Bollinger Band at $7.47. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.