DTN Midday Grain Comments 02/24 11:18

DTN Midday Grain Comments 02/24 11:18 Corn, Wheat Futures Higher at Midday; Soybeans Lower Corn futures are 15 to 16 cents higher at midday Thursday; soybean futures are 11 to 22 cents lower; wheat futures are 34 to 46 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is sharply lower with the Dow down 670 points. The U.S. Dollar Index is 120 points higher. Interest rate products are firmer. Energies are sharply higher with crude up 5.00. Livestock trade is weaker with cattle the downside leader. Precious metals are mixed with gold up 14.90. CORN: Corn futures are 15 to 16 cents higher, fading from limit-higher trade after the initial military operations commenced in Ukraine, with negative spillover from soybeans. Ethanol margins will remain poor until stocks can be cleared. Production was reported 15,000 barrels per day (bpd) higher and stocks up 24,000 barrels, keeping supplies burdensome. Trade will continue to look for further sales confirmation on the daily wire with nothing in recent days and weekly sales delayed until Friday. Basis could weaken amid the futures chaos, especially for exporters. Trade will continue watching South American weather as second-crop planting and development commences. On the March contract, we have support at the 20-day moving average at $6.37 with resistance to depend on whether we finish limit higher or not, with $7.18 3/4 the high for now. SOYBEANS: Soybean futures are 11 to 22 cents lower in wild action so far, with trade seeing a 99-cent range. Midday trade is just off the lows and spread action is firm so far, with soybeans having less of a story from the Ukraine conflict and overbought conditions. Meal is $7.00 to $9.00 lower and oil is 180 to 220 higher. Basis is expected to remain flat to weaker in the short term. The daily wire was quiet Thursday. 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, with weather remaining mixed. On the March soybean chart, we have resistance at the fresh high at $17.65 with trade well above the 20-day moving average at $15.68 support. WHEAT: Wheat futures are 34 to 46 cents higher at midday with trade backing off the lock limit higher action slightly as we look to assess how badly world wheat exports will be disrupted. The dollar is back at the highs as well as U.S. export competitiveness will continue to slide in dollar terms. Euro wheat contracts have surged as well and nearby world tenders look to be going by the wayside with Egypt cancelling. Drier weather should persist short term, with the second week moisture expected to improve for the Plains with this week's cold snap to add stress. Spring wheat has lost ground to Chicago, dropping the premium below $1.00 for the first time in months, with KC at a 34-cent premium in flat action. KC March chart support is the Upper Bollinger Band at $9.15 with resistance to be determined by the close Thursday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.