DTN Midday Grain Comments 02/23 11:40

DTN Midday Grain Comments 02/23 11:40 All Grains Lower at Midday Trade is lower across the board at midday without side-market pressure and a trend change. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 175 points. The interest rate products are lower. The dollar index is flat. Energies are lower with crude down 1.60. Livestock trade is mixed with cattle higher. Precious metals are mixed with gold up $16. CORN Corn trade is 4 to 5 cents lower at midday with selling pressure building during the day session with an overall weak commodity environment. Weather in South America for corn acres remains mostly unchanged with concerns limited at the conclusion of heavy rains in Argentina, and more open weather coming forward The energy complex continues to keep pressure on ethanol margins, although switching to spring and summer gasoline blends will be a boost to blender margins in the medium term. On the March chart the $3.66 1/2 level is where we find the 20-day and 50-day moving averages, and have fallen back through that area this morning. The 2-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. We could not extend gains, so saw some profit taking by recent longs set in along with hedge selling. The USDA outlook forum is expected to show comfortable supplies persisting for the coming crop year. SOYBEANS Soybean trade is 10 to 12 cents lower at midday with selling pressure returning with harvest picking up the pace in South America. Meal is $2 to $3 lower and oil is 60 to 70 points lower. Weather should allow for the shipping pace to improve out of Brazil as well, although there is a significant backlog to work through. On the March soybean chart are turning negative with trade falling through the 20-day moving average at $8.75 after failing at resistance levels. Support for trade is the January lows at $8.61 if weakness is sustained. WHEAT Wheat trade is 3 to 7 cents lower across the three contracts at midday with row crop weakness and improved U.S. moisture triggering selling pressure. The dollar is flat this morning, but remains in the upper end of the range. Egypt is rumored to be running short on funds to secure wheat supplies into late spring which will need to be watched. Some moisture is present on the Southern Plains, but a drier and warmer pattern has been developing in more of the hard red winter wheat territory. On the March Kansas City chart the 10-day at $4.50 is chart support which we have edged below this morning, with resistance is at the $4.58 20-day which we tested early in the week. 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.