DTN Midday Grain Comments 02/22 10:52

DTN Midday Grain Comments 02/22 10:52 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 9 to 10 cents higher at midday Tuesday; soybean futures are 19 to 21 cents higher; wheat futures are 12 to 20 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 300 points. The U.S. Dollar Index is 8 points lower. Interest rate products are mixed. Energies are firmer with crude up 2.15. Livestock trade is mixed. Precious metals are mixed with gold up 2.70. CORN: Corn futures are 9 to 10 cents higher at midday with trade fading from 17-cent-higher action overnight and fresh highs scored as the markets try to digest the Russia/Ukraine developments over the weekend. Spread action remains firm. 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 nothing confirmed in recent days. Weekly corn export inspections were good at 1.577 million metric tons (mmt), reported Tuesday due to the Monday holiday. Basis should remain rangebound in the short term with the midweek storm likely to slow movement in some areas again. 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 $6.37 then the fresh high at $6.71 3/4 as resistance. SOYBEANS: Soybean futures are 19 to 21 cents higher at midday with volatile action continuing as the early day session gave way to buying and firmer spread action as trade continues to assess the South American crop in mixed short-term weather. Meal is $4.00 to $5.00 higher and oil is 1.60 to 1.70 higher, boosting crush margins. Basis is expected to remain flat to weaker in the short term. The daily wire remains active with another 132,000 metric tons (mt) sold to China. Early harvest is underway in South America, likely to further crimp U.S. export competitiveness in February with mixed rains expected with varying potential. Weekly export inspections continued to ease lower to 975,102 mt. 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 $15.42 support. WHEAT: Wheat futures are 12 to 20 cents higher with trade scoring fresh highs for the move as the Russia/Ukraine situation escalated with trade working to hold the overnight highs at midday as we await more news. The dollar remains in the middle part of the range, with Nigeria securing 120,000 mt split between old and new crop on the daily wire as export competitiveness remains mixed. Drier weather should persist in the short term with the second week moisture backing off for the Plains with this week's cold snap to add stress. Spring wheat is softer versus Chicago, moving the premium to $1.59 on the March, with KC at a 41-cent premium in firmer action. Weekly export inspections were decent at 539,366 mt. KC March chart support is the Upper Bollinger Band at $8.48 with the fresh high at $8.65 as resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.