DTN Midday Grain Comments 02/25 11:08

DTN Midday Grain Comments 02/25 11:08 Wheat Mixed at Midday; Corn and Beans Lower Trade is mostly lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the DOW futures up 30. The interest rate products are lower. The dollar index is 3 lower. Energies are lower with crude down 0.75. Livestock trade is mixed with cattle higher. Precious metals are lower with gold down $1. CORN Corn trade is 3 to 5 cents lower with pressure from the USDA estimating corn acreage at 90 million along with soft outside markets. We have had two daily closes below the 10-day and lowest major moving average, turning the charts more negative in the near term with today continuing that trend. Energy futures are fading today, keeping pressure on ethanol margins. The weekly export sales were solid at 934,400 metric tons of old crop and 131,800 of new crop. On the March chart, support is now the contract low at $3.48 after we worked through the $3.58 recent low this morning. Resistance is at the 20-day at $3.65 1/2. The USDA Ag Outlook Forum the next two days is expected to show comfortable supplies persisting for the coming crop year. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with trade finding some pressure from South American harvest along with outside markets. Meal is flat to $1 lower and oil is 20 to 30 points higher. Weather should allow for the shipping pace to improve out of Brazil as well, although there is a significant backlog to work through with wait times up to 60 days. The new ports in the north of Brazil will help to relieve some of the pressure this year. The weekly export sales were a bit softer at 328,300 metric tons of beans, 171,100 of meal and 3,200 of oil. The USDA Ag Outlook Forum placed acres slightly lower at 82.5 million. On the March soybean chart support is the February $8. 59 1/2 low with resistance at the $8.74 1/2 20-day moving average. WHEAT Wheat trade is mixed at midday with the winter wheats leading the way. The Kansas City and Chicago contracts are back to even after a long stretch of Chicago maintaining a premium to Kansas City. The absence of export business at the lower prices continues to keep buyers away, even at these long-term lows. Egypt is rumored to be running short on funds to secure wheat supplies into late spring which will need to be watched, so maybe the U.S. will need to finance it to get the business. Weather looks non-threatening in the near term. The weekly export sales showed improvement at 387,900 metric tons of old crop and new crop sales of 98,300. On the March Kansas City chart the new low at $4.37 3/4 is support with the 10-day at $4.49 nearby resistance. 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.