DTN Midday Grain Comments 02/16 10:58

DTN Midday Grain Comments 02/16 10:58 Corn, Soybean Futures Higher at Midday; Wheat Mixed Corn futures are 7 to 8 cents higher at midday Wednesday; soybean futures are 30 to 32 cents higher; wheat futures are 2 cents lower to 3 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 215 points. The U.S. Dollar Index is 15 points lower. Interest rate products are firmer. Energies are sharply higher with crude up 2.80. Livestock trade is firmer. Precious metals are firmer with gold up 8.40. CORN: Corn futures are 7 to 8 cents higher at midday. Trade continues to rebound from the pullback Tuesday with support from soybeans as action remains rangebound overall. Ethanol margins will remain poor in the short term until driving demand improves, with the weekly report showing production up 15,000 barrels per day (bpd) and stocks up 684,000 barrels. Trade will continue to look for further sales confirmation on the daily wire with none of the major rumored sales confirmed yet. Basis should remain rangebound in the short term with the midweek storm likely to slow movement. 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 may swing acres late in the U.S. On the March contract we have support at the 20-day moving average at $6.31 then the fresh high at $6.62 3/4 as resistance. SOYBEANS: Soybean futures are 30 to 32 cents higher at midday. Trade is trying to snap back from the Tuesday washout with firmer spread action and continued production worries in South America as private estimates drift lower. Meal is $11.50 to $12.50 higher and oil is 75 to 85 points higher. Basis is expected to remain flat to weaker in the short term. Crush margins are losing ground with meal in recent days as China crush margins are trending more negative and there is some chatter of reduced demand; but oil has snapped back near the highs. NOPA crush numbers were disappointing Tuesday at 182.4 million bushels (mb), well off the recent record pace. The daily wire was very active for new crop last week with trade watching for more with 132,000 metric tons (mt) of new crop sold to China on Wednesday. Early harvest is underway in South America, likely to further crimp U.S. export competitiveness in February with mixed short-term weather. Southern growing areas look 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 $15.12 support. WHEAT: Wheat futures are 2 cents lower to 3 cents higher at midday with trade working back off the overnight lows after the washout on eased tensions on Tuesday. Trade is looking for further confirmation of second week moisture and continued easing tensions. The dollar continues to fade a bit off the highs. Drier weather should persist in the short term, with the second week looking to bring above normal moisture to the Plains while other Northern Hemisphere weather is little changed. Spring wheat is softer versus Chicago, moving the premium to $1.68 on the March, with KC at a 27-cent premium in flat action. KC March chart support is the 20-day at $8.01, with further resistance the Upper Bollinger Band at $8.36. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.