DTN Midday Grain Comments 02/21 11:09
Corn, Beans and Wheat Lower at Middday Wednesday
Corn trade is 6-7 cents lower. Beans are 10-12 cents lower and wheat trade
is 5-10 cents lower.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is weaker at midday with the S&P 10 points lower. The
dollar index is 2 points lower. The interest rate products are weaker. Energies
have crude .60 higher and natural gas .20 higher. Livestock trade is mixed.
Precious metals are mixed with gold off $4.
Corn trade is 6-7 cents lower with trade once again scoring fresh lows as
oversold conditions intensify with broad risk-off trade again today. Ethanol
margins remain stable with unleaded phasing in spring blends with the weekly
report delayed until tomorrow with signs of improved driving demand.
The daily wire was quiet. Basis has stayed steady as we head towards the end
of the month and the farmer position is expected to weigh further. Early
second-crop corn planting in Brazil is moving along at a good clip. On the
March chart, the 20-day at $4.35 is nearby resistance with the lower Bollinger
Band at $4.10 just below the $4.11 1/4 fresh low as support.
Soybean trade is 10-12 cents lower at midday with trade fading back from the
last two days of strength with meal the downside leader in product action and
talk of South American production being understated for the prior year. Meal is
3.50 to 4.50 lower and oil 45 to 55 points lower as crude softness keeps soy
oil defensive. South American weather should continue to the recent pattern
into mid-month with harvest moving along further with some concerns about drier
short-term weather in Argentina short term. The daily wire was quiet today.
Basis should remain flat short term domestically. The March soybeans have
resistance at the 20-day moving average of $11.95. The $11.62 fresh low is
nearby support with the lower Bollinger Band just below that at 11.55.
Wheat trade is 5-10 cents lower at midday with trade working to consolidate
the rebound to start the week as oversold conditions ease and spreads remain
solid. The Plains will see warmer than normal temps persist into March with
better moisture possibilities the second week. The dollar remains in the upper
end of the range with Matif wheat fading again today and staying at the low end
of the range. On the KC March chart, resistance is at the 20-day moving average
of $6.07. Support is the fresh low at $5.63 with the lower Bollinger Band just
above that at $5.69.
David Fiala can be reached at email@example.com.
Follow him on X, formerly Twitter, @davidfiala.
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