DTN Midday Grain Comments 02/28 10:51

DTN Midday Grain Comments 02/28 10:51 Corn, Soybeans Lower at Midday; Wheat Flat to Higher Corn futures are 4 to 5 cents lower at midday Tuesday; soybean futures are 24 to 25 cents lower; wheat futures are flat to 3 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 5 cents lower at midday Tuesday; soybean futures are 24 to 25 cents lower; wheat futures are flat to 3 cents higher. The U.S. stock market is mixed with the S&P up 2. The U.S. Dollar Index is 8 points lower. Interest rate products are mixed. Energies are mixed with crude up 1.60 and natural gas off .14. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold up $9.30. CORN: Corn futures are 4 to 5 cents lower at midday with trade pressing into new lows for the move as May becomes front month with little other fresh news as oversold conditions intensify. Ethanol margins should see support from the corn pullback and looming spring demand short term, but little change otherwise. Crop development will continue to be watched in Brazil with some areas catching up on second-crop corn planting, while other areas remain delayed, and Argentina continues to struggle but little material change in recent days. Basis continues to stay flat. On the May chart, support is the fresh low at $6.37 1/4 with the lower Bollinger Band above the market at $6.45 3/4. SOYBEANS: Soybean futures are 24 to 25 cents lower at midday as trade moves through support levels following the lead of corn and wheat in recent days as we get more oversold. Meal is $12.00 to $13.00 lower and oil is flat to 15 points lower. Trade will be looking for the Brazil export pace to extend the strong recent movement with harvest pace catching up, with Argentina drier and warmer short term for the most part with the recent pattern continuing. New crop continues to struggle to move closer to swinging acres from corn short term with action losing ground to start the week. Basis remains mostly sideways near term. May chart resistance is at the $15.22 20-day moving average, which we closed just below Friday, with the Lower Bollinger Band at $15.01, which we have washed below at midday. WHEAT: Wheat futures are flat to 3 cents higher at midday with winter wheat trade leading with firmer spread action as we see two-sided action and oversold conditions. The KC wheat areas are back to warmer and drier in the immediate term after the weekend activity with some more chances in the extended forecast, with more follow-up needed with Chicago areas to see broader moisture overall. Matif wheat values have worked back lower to start the day. The strong dollar will likely limit upside if sustained as we hold at the upper end of the recent range with another down day needed to shift the trend with flat action with only slight weakness Tuesday. On the chart, KC May has faded back below the lower Bollinger Band at $8.24 with $8.08 below that as the calendar year low. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.