DTN Midday Grain Comments 02/23 10:58
Corn, Beans Lower; Wheat Mixed at Middday Friday
Corn trade is 3-4 cents lower, beans are 7-9 cents lower and wheat trade is
1-6 cents lower.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is mixed at midday with the S&P 1 point higher. The
dollar index is 2 points higher. The interest rate products are firmer.
Energies have crude 1.40 lower and natural gas .13 lower. Livestock trade is
firmer. Precious metals are mixed with gold up $12.
Corn trade is 3-4 cents lower at midday with trade fading to fresh lows just
below $4 on the March contract as we head towards option expiration at noon.
Ethanol margins remain stable with unleaded phasing in spring blends which
boosts blender margins along with the cheaper corn and natural gas.
The daily wire was quiet for corn with weekly export sales a touch softer at
820,400 metric tons of old crop and 177,700 of new. Basis has stayed steady as
we head towards the end of the month and the farmer position is expected to
weigh further as basis contract gets rolled or priced. Early second-crop corn
should continue to progress. On the March chart, the 20-day at $4.31 is nearby
resistance with the lower Bollinger Band at $4.03 just above the $3.98 1/4
fresh low as support.
Soybean trade is 7-9 cents lower at midday with trade fading again to fresh
lows as product action remains soft and South American harvest pushes forward.
Meal is 2.50 to 3.50 lower and oil is flat to 10 points higher. South American
weather should continue to the recent pattern into mid-month with harvest
moving along further while Argentina looks to be mixed to better short term.
The daily wire was quiet yesterday with weekly sales poor at 55,900 metric
tons of beans, 202,400 of old crop meal, 500 of new, and -5,300 of oil. Basis
should remain flat short term domestically. The March soybeans have resistance
at the 20-day moving average of $11.90. The $11.31 1/2 fresh low is nearby
support with the lower Bollinger Band just above that at 11.43.
Wheat trade is 1-6 cents lower with firmer spread action continuing but
early gains fading with the row crop weakness. The Plains will see
warmer-than-normal temps persist into March with better moisture possibilities
the second week as crop starts to leave dormancy early. The dollar is pulling
back further from recent highs with Matif wheat holding off the lows as it
finally eases oversold conditions. Wheat export sales were a touch weaker at
233,500 metric tons of old crop, and 46,600 of new. On the KC March cchart,
resistance is at the 20-day moving average of $6.01, which we remain well
below. Support is the fresh low at $5.63 with the lower Bollinger Band just
below that at $5.61.
David Fiala can be reached at firstname.lastname@example.org.
Follow him on X, formerly Twitter, @davidfiala.
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