DTN Midday Grain Comments 02/02 10:51

DTN Midday Grain Comments 02/02 10:51 Corn, Soybeans Lower Midday Tuesday Corn is 4 to 5 cents lower, soybeans are 11 to 13 cents lower and wheat is flat to 6 cents lower. David M. Fiala DTN Contributing Analyst The U.S. stock market is firmer with the Dow up 600 points. The U.S. Dollar Index is 19 points higher. Interest rate products are weaker. Energies are firmer with crude up $1.30. Livestock trade is firmer. Precious metals are weaker with gold down $23.00. CORN Corn trade is 5 to 6 cents lower at midday on Tuesday with trade fading late in the overnight session after early initial strength with spread trade remaining steady and spillover from soybeans helping to pull corn lower. Ethanol margins will remain poor with soft demand and cash corn values, but energy complex strength will help. Trade will be looking for confirmation of further export sales as well with 115,000 metric tons sold to Mexico. Basis has remained fairly sideways with shipping pace needing to increase to meet recent sales. On the March contract support is the 20-day at $5.20, with the next level up the fresh high at $5.55 3/4. SOYBEANS Soybeans are 11 to 13 cents lower at midday with trade fading back from resistance levels overnight along with firmer spread action. Meal is $3.00 to $4.00 lower and oil is 0.45 cent to 0.55 cent lower. Basis will likely remain flat with slower movement as the export program winds down and a bigger focus on crush margins. Brazil should catch rains short term with early harvest underway and behind the usual pace, with Argentina action mixed with central and south the drier areas, although temps do not look to be extreme. November soybeans gained versus corn as the crop insurance pricing period but Monday's gains have been erased overnight. The March chart has resistance at the 20-day at $13.72 with the lower Bollinger band well below the market as next support at $13.17. WHEAT Wheat trade is flat to 6 cents lower at midday with weaker row crop action and the stronger dollar weighing on wheat with spring wheat holding up the best so far. The dollar is holding above 91 points on the index, which will provide a headwind, if sustained. The Plains should keep snow cover in many areas for a bit with a cold shot coming late in the week. Black Sea weather isn't showing major short-term changes with two weeks until export taxes get phased in for Russian sellers with the imposition of floating export taxes moved up from July 1 to June 1. KC is at 24-cent discount to Chicago with a soft start to the week, with Minneapolis at a 27-cent discount. KC March chart support is the 20-day at $6.23 which we are testing at midday, and resistance is the upper Bollinger band at $6.56. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.