DTN Midday Grain Comments 02/16 10:48

DTN Midday Grain Comments 02/16 10:48 Soybean Futures are Higher at Midday; Corn Lower; Wheat Mixed Corn futures are 1 to 2 cents lower at midday Thursday; soybean futures are 1 to 2 cents higher; wheat trade is 6 cents lower to 3 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents lower at midday Thursday; soybean futures are 1 to 2 cents higher; wheat trade is 6 cents lower to 3 cents higher. The U.S. stock market is weaker with the S&P off 25 points. The U.S. Dollar Index is 15 points higher. Interest rate products are weaker. Energies are weaker with crude off .27 and natural gas off .01. Livestock trade is mostly lower. Precious metals are weaker with gold off $3.00. CORN: Corn futures are 1 to 2 cents lower at midday with trade holding support at the lower end of the range so far. Ethanol margins remain rangebound with a little support coming soon from spring unleaded blends. 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 behind for the time being. Weekly export sales were better than expected at 1.025 million metric tons (mmt) of old crop and 100,000 metric tons (mt) of new. Basis has remained flat to weaker in recent days. On the March chart, resistance is at the $6.78 20-day moving average, which we closed just below, 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 1 to 2 cents higher at midday with South American weather support still in place. Buying enthusiasm remains muted, keeping trade two-sided so far. Meal is narrowly mixed and oil is 55 to 65 points higher. The daily export wire reported 128,000 mt sold to unknown destinations today. Weekly export sales softened seasonally with 512,800 mt old, 259,100 mt new, 270,900 of meal, and 25,000 of new meal, with 8,300 of oil. 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 continues to struggle to move closer to swinging acres. Basis remains mostly sideways near term. March chart support is at the $15.23 20-day moving average, which we bounced back from again Thursday, 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 6 cents lower to 3 cents higher at midday with spring wheat leading as trade consolidates further just off the week highs. The KC wheat areas should see broad moisture for many with the snow system Thursday with some follow-up possible next week with some cold to drop down to the west with more overall moisture needed, while the Black Sea situation has shown little change in recent days. Matif wheat values are softer as well. Weekly export sales were mediocre at 209,800 mt old crop, and 23,000 of new. On the chart, KC March has support at the 20-day moving average at $8.76, 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.