DTN Midday Grain Comments 02/21 10:51

DTN Midday Grain Comments 02/21 10:51 Soybean Futures are Higher at Midday; Corn Lower; Wheat Mixed Corn futures are flat to 1 cent lower at midday Tuesday; soybean futures are 11 to 12 cents higher; wheat futures are 9 cents lower to 1 cent higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 1 cent lower at midday Tuesday; soybean futures are 11 to 12 cents higher; wheat futures are 9 cents lower to 1 cent higher. The U.S. stock market is weaker with the S P off 65 points. The U.S. Dollar Index is 15 points higher. Interest rate products are weaker. Energies are mixed with crude up .10 and natural gas off .15. Livestock trade is mostly higher with hogs leading. Precious metals are weaker with gold off $5.00. CORN: Corn futures are flat to a penny lower with trade pressing back into the middle of the range before fading during the day session with little fresh news to move trade. Ethanol margins remain rangebound with a little support coming soon from spring unleaded blends, while natural gas remains near the lows to help support margins as we move forward. Crop development will continue to be slowed in Brazil with double-crop planting lagging, while Argentina had a cold shot amidst the drier weather with above-normal temps expected to return this week. Weekly export inspections remain soft at 622,841 metric tons (mt). 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 have edged above overnight with the lower Bollinger Band at $6.69 below that serving as further support; the upper Bollinger Band is just above the market at $6.86 as the range tightens up further. SOYBEANS: Soybeans futures are 11 to 12 cents higher with trade pushing back to the upper end of the range with support from Argentina crop stress and slow harvest in Brazil short-term. Meal was $4.00 to $5.00 higher and oil was 40 to 50 points higher. Weekly export inspections remain solid at 1.578 million metric tons (mmt), ahead of last year's pace. 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 and warmer short-term after some surprise frosts this weekend. New crop continues to struggle to move closer to swinging acres from corn with some progress to start the week. Basis remains mostly sideways near term. March chart support is at the $15.23 20-day moving average, which we bounced back from again Tuesday, 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 9 cents lower to 1 cent higher with action continuing to consolidate at the upper end of the range with KC leading so far. The KC wheat areas will see some moisture to the east with a midweek cold shot while the SRW should see better rains, with some showers working into the Black Sea areas as well. Matif wheat values are softer this morning. The strong dollar will likely limit upside if sustained as we hold at the upper end of the recent range. On the chart, KC March has support at the 20-day moving average at $8.84, 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.