DTN Midday Grain Comments 02/22 11:31

DTN Midday Grain Comments 02/22 11:31 Grains Flat to Higher at Midday Grain trade is mostly higher at midday, but momentum is flat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 190 points. The interest rate products are higher. The dollar index is 85 points higher. Energies are higher with crude up 1.80. Livestock trade is higher. Precious metals are mixed with gold down $20. CORN Corn trade is 1 to 3 cents higher at midday with stronger crude and equity trade supporting the market while the dollar has firmer sharply to start the week. Heavy rains in Argentina have raised some mild flooding concerns, but overall major weather issues in South America for corn continue to be lacking. The weekly export inspection number was strong at 900,322 metric tons, and Colombia bought 100,000 metric tons. Ethanol margins should remain stable with a firmer energy complex trade offsetting firmer corn trade so far. On the March chart the $3.66 1/2 level is where we find the 20-day and 50-day moving averages, and we are back above them at midday, but trade will need to finish convincingly higher to provide additional buying enthusiasm. The two-month high at $3.73 3/4 is where longer term resistance is located. Support is at the $3.58 1/4 January low then the $3.48 1/2 contract low. The USDA outlook forum is expected to show excess supply persisting for the coming crop year. SOYBEANS Soybean trade is 3 to 6 cents higher at midday with light commercial buying supporting trade with harvest disruptions in South America. Meal is $3 to $4 higher, and oil is 5 to 15 points higher. Rains have slowed some of the South American harvest which could slow their shipment pace this week. The weekly export inspections remained strong at 1.531 million metric tons. On the March soybean chart we continue to try and move through the 100-day moving average at $8.81, and we are solidly above that area at midday. Chart support is at the $8.76 20-day with further resistance at the $8.89 1/2 2-month high than the $9.10 200-day moving average. WHEAT Wheat trade is narrowly mixed in quiet trade at midday with early gains giving way to light selling during the morning session. Egypt paid a premium last week for Black Sea wheat and the world export situation will have to be watched this week with the U.S. at a continued disadvantage with the dollar spiking this morning. Weekly export inspections were soft at 245,464 metric tons. On the March Kansas City chart the 10-day at $4.48 is chart support, with resistance is at the $4.58 20-day which we are just below at midday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.