DTN Midday Grain Comments 02/23 11:05

DTN Midday Grain Comments 02/23 11:05 Soybean, Wheat Futures Higher at Midday; Corn Lower Corn futures are 1 to 2 cents lower at midday Wednesday; soybean futures are 25 to 28 cents higher; wheat futures are 5 to 18 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 90 points. The U.S. Dollar Index is 10 points higher. Interest rate products are weaker. Energies are firmer with crude up .50. Livestock trade is weaker with hogs the downside leader. Precious metals are mixed with gold up 2.70. CORN: Corn futures are 1 to 2 cents lower at midday with softer spread action as trade works to consolidate at fresh highs with spillover support from wheat and soybeans. Ethanol margins will remain poor in the short term until driving demand improves with upcoming spring maintenance season likely to help with stocks; the weekly report is delayed until Thursday. Trade will continue to look for further sales confirmation on the daily wire with nothing reported in recent days. 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. 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 $6.77 1/4 as resistance. SOYBEANS: Soybean futures are 25 to 28 cents higher at midday with strong spread action as the March contract heads to deliveries with fresh highs as waves of buying continue to move into the market. Meal is $11.00 to $12.00 higher, and oil is .10 to .20 higher, boosting crush margins with oil fading from fresh highs. Basis is expected to remain flat to weaker in the short term. The daily export 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 moving forward with shipments needing to catch up more to create any pressure, though. On the March soybean chart, we have resistance at the fresh high at $16.66 1/2 with trade well above the 20-day moving average at $15.55 support. WHEAT: Wheat futures are 5 to 18 cents higher at midday with early losses turning to fresh highs in the day session for winter wheats as waves of buying returned. The dollar remains in the middle part of the range with trade watching to see the degree of shipping issues from the Black Sea as the Russia/Ukraine saga moves on. Drier weather should persist in the short term with second-week moisture remaining limited for the Plains with this week's cold snap to add stress. Spring wheat is softer versus Chicago, moving the premium to $1.30 on the March, with KC at a 38-cent premium in softer action. KC March chart support is the Upper Bollinger Band at $8.75 with the fall high at $9.03 as resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.