DTN Midday Grain Comments 02/17 10:53

DTN Midday Grain Comments 02/17 10:53 Soybean, Wheat Futures Higher at Midday; Corn Steady-Higher Corn futures are flat to 1 cent higher at midday Thursday; soybean futures are 3 to 4 cents higher; wheat futures 3 to 15 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is sharply lower with the Dow down 420 points. The U.S. Dollar Index is 10 points higher. Interest rate products are firmer. Energies are sharply higher with crude down 2.00. Livestock trade is mixed. Precious metals are firmer with gold up 25.50. CORN: Corn futures are flat to 1 cent higher at midday with two-sided trade all session so far, along with weaker spread action as trade looks for a greater catalyst to move. Ethanol margins will remain poor in the short term until driving demand improves with upcoming spring maintenance season likely to help with stocks. Trade will continue to look for further sales confirmation on the daily wire with none of the major rumored sales confirmed yet. USDA's Weekly Export Sales and Shipments (WESS) report showed softer weekly sales at 820,000 metric tons (mt) of old crop and 113,500 mt of new. 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 $6.33 then the fresh high at $6.62 3/4 as resistance. SOYBEANS: Soybean futures are 3 to 4 cents higher with trade fading to mixed at midday after early pushes back over $16.00 nearby. Meal is flat to $1.00 lower and oil is 20 to 30 points lower. Basis is expected to remain flat to weaker in the short term. Crush margins are slipping Thursday with beans staying ahead of products so far. The daily wire has been very active for new-crop with Thursday breaking the streak with an old crop sale announcement. Weekly export sales were very strong at 1.36 million metric tons (mmt) of old crop and 1.53 mmt of new, with 279,100 mt of old mean, 40,000 mt of new meal along with 35,400 of oil. Early harvest in underway in South America, likely to further crimp U.S. export competitiveness in February with mixed short-term weather with the southern growing areas looking 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 $15.23 support. WHEAT: Wheat futures are 3 to 15 cents higher at midday with the winter wheats leading as tensions flare over Ukraine again overnight and moisture works across parts of the Plains. The dollar remains in the middle part of the range. Drier weather should persist in the short term, with the second week looking to bring above normal moisture to parts of the Plains with Chicago wheat areas seeing better coverage. Weekly export sales remain pretty soft at 118,100 mt of old crop and 10,500 mt of new. Spring wheat is softer versus Chicago, moving the premium to $1.60 on the March, with KC at a 25-cent premium in softer action. KC March chart support is the 20-day moving average at $8.02, with further resistance the Upper Bollinger Band at $8.38. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.