DTN Midday Grain Comments 02/28 10:54

DTN Midday Grain Comments 02/28 10:54 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 32 to 34 cents higher at midday Monday; soybean futures are 51 to 53 cents higher; wheat futures are 27 to 56 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow 100 points lower. The U.S. Dollar Index is 10 points higher. Interest rate products are firmer. Energies are mostly higher with crude up 3.00. Livestock trade is mostly lower with hogs leading. Precious metals are firmer with gold up 15.00. CORN: Corn futures are 32 to 34 cents higher at midday with firmer spread action as highly volatile trade is likely to continue as we work through political developments and how they may affect demand, production and liquidity. Ethanol margins will remain tight, but demand is showing signs of picking up and March maintenance season will help reduce stocks. Trade will continue to look for further sales confirmation on the daily wire with nothing in recent days. Weekly export inspections reported Monday morning were strong at 1.544 million metric tons (mmt). Basis could weaken amid the futures chaos, especially for exporters. Trade will continue watching South American weather as we head into second-crop planting and development with an OK start so far along with new-crop strength in soybeans to swing acres late in the U.S. On the May contract, we have support at the 20-day moving average at $6.47 with resistance at the spike high at $7.16 1/4. SOYBEANS: Soybean futures are 51 to 54 cents higher at midday with trade trying to retrace the end-of-week pullback with support from corn and wheat. Meal is $7.00 to $8.00 higher and oil is 215 to 225 points higher. Basis is expected to remain flat to weaker in the short term until futures action calms down. Sales of 120,000 metric tons (mt) of old-crop soybeans were announced to unknown and 136,000 mt of new crop to China. Weekly export inspections continue to ease lower seasonally to 735,278 mo. 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 May soybean chart, we have resistance at the fresh high at $17.59 with trade well above the 20-day moving average at $15.84 support, which we closed just above on Friday. WHEAT: Wheat futures are 27 to 56 cents higher at midday with trade working back from the expanded limit lower washout action on Friday with 75 cents limits in play again Monday for the winter wheats with political concerns and export disruptions the main drivers for now. The dollar is back near the highs as well as U.S. export competitiveness will continue to slide in dollar terms but does not have the headwinds of port disruptions. Black Sea shipping has already been disrupted by missile strikes with GASC reportedly shifting cargos to U.S. origin. Drier weather should persist in the short term, with the second week moisture expected to improve for the Plains with this week's warm up likely to start greening the crop up in spots. Spring wheat has weakened versus Chicago sliding the premium to .75 on the May, with KC at a 33-cent premium in firmer action. Weekly export inspections faded slightly at 406,183 mt. KC March chart support is the 20-day moving average at $8.27 with resistance the $9.80 high and big ranges likely to continue. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.