DTN Midday Grain Comments 02/18 10:50

DTN Midday Grain Comments 02/18 10:50 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 5 to 6 cents higher at midday Friday; soybean futures are 8 to 10 cents higher; wheat futures are 7 to 18 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 100 points. The U.S. Dollar Index is 25 points higher. Interest rate products are firmer. Energies are flat to higher with crude up .30. Livestock trade is mixed. Precious metals are mixed with gold down 6.50. CORN: Corn futures are 5 to 6 cents higher at midday Friday, following wheat and soybeans higher after early two-sided trade and little fresh, corn-specific news. 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 on the daily wire with nothing showing up this week. Basis should remain rangebound in the short term with the midweek storm likely to slow movement into the weekend. Trade will continue watching South American weather as we head into second-crop planting and development with an OK start. 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 $6.35 then the fresh high at $6.62 3/4 as resistance. SOYBEANS: Soybean futures are 8 to 10 cents higher with trade continuing to chop right above $16.00 nearby and firmer spread action as products kick back into gear with oil leading. Meal is $1.50 to $2.50 higher and oil is 45 to 55 points higher, helping support the crush margins that have struggled a bit this week. Basis is expected to remain flat to weaker in the short term. The daily wire showed another 198,000 metric tons (mt) booked with two-thirds new crop. Early harvest is 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 at $15.31 support. WHEAT: Wheat futures are 7 to 18 cents higher at midday with trade reversing early losses again overnight to test the upper end of the range. Trade is waiting for fresh Russia-Ukraine headlines, while U.S. weather turns colder and drier in the short term for the Plains, while the eastern growing areas look excessively wet. The dollar remains in the middle part of the range. Drier weather should persist in the short term, with the second week moisture backing off for the Plains. Spring wheat is flat versus Chicago, keeping the premium to $1.59 on the March, with KC at a 35-cent premium in sharply action. KC March chart support is the 20-day at $8.04, with further resistance the Upper Bollinger Band at $8.42, which we are just below at midday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.