DTN Midday Grain Comments 02/24 10:47

DTN Midday Grain Comments 02/24 10:47 Corn, Wheat Futures Lower at Midday; Soybeans Flat to Lower Corn futures are 6 to 7 cents lower at midday Friday; soybean futures are flat to 4 cents lower; wheat futures are 15 to 23 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 6 to 7 cents lower at midday Friday; soybean futures are flat to 4 cents lower; wheat futures are 15 to 23 cents lower. The U.S. stock market is weaker with the S&P off 60. The U.S. Dollar Index is 65 points higher. Interest rate products are weaker. Energies are mixed with crude off .10 and natural gas up .11. Livestock trade is weaker. Precious metals are weaker with gold off $10.00. CORN: Corn futures are 6 to 7 cents lower at midday with selling continuing as trade extends Thursday's washout after we faded through nearby support levels. Ethanol margins should see support from spring demand and cheaper corn and natural gas short term. 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 as the recent pattern continues with some mixed showers potentially near term. Weekly export sales were down a touch from recent weeks at 823,200 metric tons (mt) of old crop and 25,500 mt of new. Basis continues to stay flat. On the March chart, support is the calendar year low at $6.49 with the lower Bollinger Band just above the market at $6.62. SOYBEANS: Soybean futures are flat to 4 cents lower with action chopping along the upper end of the recent range with spread action remaining firmer so far with little change to the South American situation short term. Meal is $7.00 to $8.00 higher and oil is 45 to 55 points lower. Weekly export sales eased a bit at 544,900 mt old crop and 11,700 mt new, with products soft at 65,600 of meal, and -800 of oil. 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 for the most part. 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 $15.30 20-day moving average which we bounced back from again Friday, with the Upper Bollinger Band at $15.52, which we tested Thursday with a new high at $15.55 1/2. WHEAT: Wheat futures are 15 to 23 cents lower at midday as we have the third day of selling as the dollar presses to new highs for the move, and other fresh bullish news remains limited with spread action stabilizing. The KC wheat areas will see some moisture potentially in the short term, but placement remains elusive with SRW areas to see broader moisture overall. Matif wheat values have edged back lower. The strong dollar will likely limit upside if sustained as we hold at the upper end of the recent range. Weekly export sales remained rangebound at 388,800 mt old, and 80,000 mt of new. On the chart, KC March has faded back below the lower Bollinger Band at $8.55 with $8.18 below that as the recent low. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.