DTN Midday Grain Comments 02/22 10:52

DTN Midday Grain Comments 02/22 10:52 All Grains Lower at Midday Corn trade is 4 to 5 cents lower, beans are 5 to 6 cents lower, and wheat trade is 8 to 21 cents lower at midday Wednesday. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is flat with the S&P unchanged. The dollar index is 15 points higher. Interest rate products are firmer. Energies are mixed with crude off $1.90 and natural gas up $0.12. The livestock trade is mixed with cattle leading. Precious metals are mixed with gold unchanged. CORN: Corn trade is 4 to 5 cents lower at midday with broad ag weakness pressing action back to support levels. Ethanol margins remain rangebound with a little support coming soon from spring unleaded blends. Meanwhile, natural gas remains near the lows to help support margins as we move forward with the weekly report delayed until Thursday. Crop development will continue to be slowed in Brazil with double-crop planting lagging with delays likely to continue as rains fall, while Argentina continues to struggle to finish. The daily export wire will need to show life again this week with nothing again Wednesday. 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 faded from again with the lower Bollinger Band at $6.72 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 are 5 to 6 cents lower at midday with trade holding the upper end of the range with support from South American weather. But new bullish developments to extend gains will be needed with spillover weakness from other markets. Meal is $5 to $6 lower, and oil is 35 to 45 points higher. The daily export wire will be watched with export season winding down with nothing to start the week. Trade will be looking for the Brazil export pace to extend the strong recent movement, but harvest pace will remain off the average pace short term, with Argentina drier and warmer short term still. 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 $15.28 20-day, which we bounced back from again Wednesday. The Upper Bollinger Band is at $15.52, which we tested Tuesday with a new high at $15.55 1/2. WHEAT: Wheat trade is 8 to 21 cents lower with Minneapolis wheat leading as KC sees broader selling as spread action unwinds away from it, along with softer Intra-month action ahead of May becoming the front month. The KC wheat areas will see some moisture to the east with a midweek cold shot, while the soft red winter wheat should see better rains with another moisture chance over the weekend for the west. Some showers are working into the Black Sea areas as well. Matif wheat values are softer Wednesday morning as well. The strong dollar will likely limit the 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 $8.86, which we are just below at midday, with the fresh high at $9.21 1/4 as resistance. The Upper Bollinger Band is at $9.25. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.