DTN Midday Grain Comments 02/17 10:48

DTN Midday Grain Comments 02/17 10:48 Corn, Soybean Futures Higher at Midday; Wheat Flat to Higher Corn futures are 1 to 2 cents higher at midday Friday; soybean futures are 1 to 2 cents higher; wheat futures are flat to 6 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents higher at midday Friday; soybean futures are 1 to 2 cents higher; wheat futures are flat to 6 cents higher. The U.S. stock market is weaker with the S&P off 40 points. The U.S. Dollar Index is 30 points higher. Interest rate products are weaker. Energies are weaker with crude off 2.00 and natural gas off .12. Livestock trade is mostly higher. Precious metals are weaker with gold off $5.00. CORN: Corn futures are 1 to 2 cents higher at midday with trade holding support at the lower end of the range, with spread trade still softening as we head toward March contract delivery. Ethanol margins remain rangebound with a little support coming soon from spring unleaded blends while natural gas remains near the lows. Crop development will continue to be watched with Argentina seeing some shower activity, but giving drier weather ahead again, along with Brazil double-crop planting progress likely to remain behind for the time being. The daily export wire saw a little action Friday with 120,800 metric tons (mt) announced sold to unknown. 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 remain 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 tightens up further. SOYBEANS: Soybean futures are 1 to 2 cents higher at midday with trade holding support and edging higher as South American weather remains supportive, and while crush margins flatten out. Meal is flat to $1.00 lower and oil is flat to 10 points lower. The daily export wire was quiet today as the peak selling season winds down. Trade will be looking for the Brazil export pace to pick up soon, but harvest pace will remain off the average pace short-term, with Argentina drier but not as hot short-term. New crop continues to struggle to move closer to swinging acres from corn. Basis remains mostly sideways near-term. March chart support is at the $15.23 20-day moving average, which we bounced back from again Friday, with the Upper Bollinger Band at $15.53, which we tested Monday with a new high at 15.55 1/2. WHEAT: Wheat futures are flat to 6 cents higher at midday as trade works to consolidate further near the upper end of the range, with the first losing week in a month likely as we remain just short of the early week highs. The KC wheat areas will see some light follow-up snow potential over the next week with temps generally back toward normal to above, except for the Clipper systems moving through, while the Black Sea situation has shown little change in recent days. Matif wheat values are flat to firmer this morning. The strong dollar will likely limit upside if sustained. On the chart, KC March has support at the 20-day moving average at $8.79, 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.