DTN Midday Grain Comments 02/15 10:50

DTN Midday Grain Comments 02/15 10:50 Corn, Soybeans, Wheat Lower at Midday Corn futures are 5 to 6 cents lower at midday Wednesday; soybean futures are 17 to 20 cents lower; wheat futures are 12 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 6 cents lower at midday Wednesday; soybean futures are 17 to 20 cents lower; wheat futures are 12 to 18 cents lower. The U.S. stock market is mixed with the S&P off 7 points. The U.S. Dollar Index is 78 points higher. Interest rate products are weaker. Energies are weaker with crude off 1.50 and natural gas unchanged. Livestock trade is mostly lower. Precious metals are weaker with gold down $21.00. CORN: Corn futures are 5 to 6 cents lower at midday with trade once again fading back to support levels with broad ag weakness and risk-off trade. Ethanol margins remain range-bound with production bouncing by 14,000 barrels per day (bpd), with stocks 922,000 higher. Crop development will continue to be watched with Argentina seeing some shower activity but the main crop areas seeing less coverage, along with Brazil double-crop planting progress likely to remain slower short-term. The daily export wire saw some action with 213,370 metric tons (mt) of old crop sold to Mexico. Basis has remained flat to weaker in recent days. On the March chart, support is at the $6.78 20-day moving average, which we are testing again at midday with the lower Bollinger Band at $6.69 below that as the range tightens up serving as further support, with the Upper Bollinger Band just above the market at $6.86 as the range coils. SOYBEANS: Soybean futures are 17 to 20 cents lower with trade fading back from the high end of the range with fresh bullish news needed to push trade with demand news quiet and South American progress still a bit limited, which should add support on further weakness. Meal is $6.50 to $7.50 lower and oil is 50 to 60 points lower. The daily export wire will need to show more life in the late export window; there is some talk of sales getting done that will show later in the week. Trade will be looking for the Brazil export pace to pick up soon but harvest pace will remain off the average pace for a bit, with Argentina still needing broader rains to stabilize the crop. New crop is giving back recent gains versus corn this morning as well. Basis remains mostly sideways near term. March chart support is at the $15.21 20-day moving average, which we are just below at midday, with the Upper Bollinger Band at $15.52 which we tested Monday with a new high at 15.55 1/2. WHEAT: Wheat futures are 12 to 18 cents lower with trade fading further from the recent highs with the stronger dollar and little other fresh news to move trade as we ease overbought conditions. The KC wheat areas should see broad moisture for many with the snow system Wednesday with some follow-up possible next week with some cold to drop down to the west. The Black Sea situation has shown little change in recent days. Matif wheat values are softer as well. On the chart, KC March has support at the 20-day moving average at $8.73, which we are solidly above, with the fresh high at $9.21 1/4 as resistance with the Upper Bollinger Band at $9.25. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.