DTN Midday Grain Comments     02/01 11:02

   Corn, Soybeans Lower at Midday; Wheat Mixed

   Corn trade is 3 to 4 cents lower; beans are 17 to 19 cents lower, and wheat 
trade is 8 cents lower to 4 cents higher. 

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   The U.S. stock market is weaker with the Dow down 245 points. The dollar 
index is 40 points lower. Interest rate products are firmer. Energies are 
weaker with crude down 0.70 and natural gas down 0.11.  Livestock trade is 
lower. Precious metals are flat with gold unchanged.

CORN:

   Corn trade is 3 to 4 cents lower at midday with trade fading back to the 
lower end of the recent range with soft spread action and little fresh news. 
Ethanol margins have support from natural gas while blender margins tighten 
again as unleaded fades from the recent highs with the weekly report showing 
production up by 15,000 barrels per day, with stocks down 635,000 barrels. Crop 
development will continue to be watched with mixed Argentina rains and double 
crop planting in Brazil about to get going. The daily export wire has been 
quiet to start the week. Basis has stabilized in the west with above average 
action holding up overall. On the March chart, support is at the $6.70 20-day 
moving average with the upper Bollinger Band at $6.94 the next round up, which 
we have faded from last week with a fresh high for the move being scored at 
$6.88 3/4, which we tested Tuesday.

SOYBEANS:

   Soybeans are 17 to 19 cents lower at midday with better South American 
progress and demand questions up front as trade fades back from the upper end 
of the range. Meal is 0.50 to 1.50 lower, and oil is 145 to 155 points lower. 
The daily export wire has remained quiet as we watch for more action from China 
as they return from holiday. South American weather should help stabilize the 
Argentina crop with Brazil harvest pace to lag a little bit. Basis remains 
mostly sideways near term. March chart support is at the $15.08 20-day which we 
remain solidly above, with the Upper Bollinger Band at $15.50.

WHEAT:

   Wheat trade is 8 cents lower to 4 cents higher with trade consolidating 
recent gains at the upper end of the range with little fresh news to push 
action this AM with KC and Minneapolis taking the lead. Matif wheat values are 
a bit softer as well. On the chart, KC March has support at the 20-day moving 
average at $8.44 which we are solidly above, with the recent high at $8.95 as 
resistance with the Upper Bollinger Band at $8.82 which we are just below at 
midday.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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