DTN Midday Grain Comments 02/11 11:08

DTN Midday Grain Comments 02/11 11:08 Corn, Wheat Futures Flat to Higher at Midday; Soybeans Lower Corn futures are flat to 2 cents higher at midday Friday; soybean futures are 2 to 3 cents lower; wheat futures are flat to 7 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 25 points. The U.S. Dollar Index is 20 points higher. Interest rate products are weaker. Energies are firmer with crude up 1.50. Livestock trade is weaker. Precious metals are weaker with gold down 2.50. CORN: Corn futures are flat to 2 cents higher at midday with softer spread action as trade works to find footing after the broad reversal Thursday with early gains fading. Ethanol margins will remain poor in the short term until driving demand improves and stocks narrow. Trade will continue to look for further sales confirmation on the daily wire; Friday showed 128,000 metric tons (mt) sold to Japan. Basis should remain rangebound to slightly weaker in the short term, especially at the processors. Trade will continue watching South American weather as we head into second-crop planting and development with an OK start so far. New-crop strength in soybeans could swing acres late in the U.S. On the March contract we have support at the 20-day moving average at $6.24 then the fresh high at $6.62 3/4 as resistance. SOYBEANS: Soybean futures are 2 to 3 cents lower with early strength fading again today with another lower close likely to tempt selling into the close if sustained. Meal is flat to $1.00 lower and oil is 20 to 30 points higher. Basis is expected to remain flat to weaker in the short term with the active board trade. Crush margins continue to be supported by meal gains with oil remaining just below the highs. The daily wire remains active this week, with another 108,000 mt of new crop sold to China and 30,000 metric tons of oil to unknown Friday. Early harvest in underway 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. On the March soybean chart, we have resistance at the fresh high at $16.33 with trade well above the 20-day moving average at $14.85 as support. WHEAT: Wheat futures are 2 to 9 cents higher at midday with Chicago trade leading as wheat looks to consolidate the recent rebound further going into the weekend with fresh news still mostly lacking. The dollar continues to work sideways into the lower end of the range. Drier weather returns to the Southern Plains in the short term with better moisture for the south and east potentially next week with warmer weather removing cover with weather issues more limited in the Black Sea for now. Fresh news from Ukraine and Russia remains limited on the political front with Russia reducing export taxes slightly. Spring wheat is weaker versus Chicago softening the premium to $1.70 on the March, with KC at a 22-cent premium in softer action. KC March chart support is the 20-day moving average at $7.94 which we are a dime above at midday, with further resistance the Upper Bollinger Band at $8.33. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.