DTN Midday Grain Comments 02/24 10:47
Grains Seeing Lots of Green on the Board Midday
Corn is 3 to 5 cents higher, soybeans are 11 to 13 cents higher and wheat is
8 to 11 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 250 points. The U.S. Dollar
Index is 0.15 higher. Interest rate products are weaker. Energies are firmer
with crude up $1.60. Livestock trade is firmer. Precious metals are mixed with
gold down $12.00.
Corn trade is 3 to 5 cents higher at midday Wednesday with mixed spread
action as trade continues to test the upper end of the range and remains at
contract highs for new crop. Ethanol production was down 253,000 barrels per
day last week in the expected contraction, with stocks down 1.513 million
barrels as production is recovering this week while the energy complex
continues to firm. Trade will continue to look for further export-sale
confirmations with the daily wire remaining quiet Wednesday, while shipping
pace should recover further this week. Basis should remain sideways short term.
Double crop planting in Brazil is well underway as well but behind the usual
pace. On the March contract support is the 20-day at $5.47 with the upper
Bollinger Band at $5.63 as resistance.
Soybeans is 11 to 13 cents higher at midday with trade making new highs
again before fading slightly, and November remains near contract highs. Meal is
$1.50 to $2.50 higher and oil is 1.45 cents to 1.55 cents higher. Basis will
likely remain flat at strong levels with slower movement as the export program
winds down and a bigger focus is on crush margins. Brazil should catch rains
short term with harvest underway and behind the usual pace. Export shipments
are picking up steam, with Argentina action trending warmer and drier over the
next week. November soybeans scored new highs along with December corn as they
try to make a late acre push. The March chart has resistance at the fresh high
at $14.26 1/2, with support the 20-day at $13.77.
Wheat trade is 8 to 11 cents higher at midday with trade pushing to new
highs on support from cold Russian weather and spillover from the row crops.
The dollar looks to be settling into a 90-91 range on the index and trade
remains in the lower end of the range despite the firmer action to start the
week. The Plains should see snow cover lift this week with sustained warmer
weather likely to start growth into mid-March. KC is at 24-cent discount to
Chicago; Minneapolis is at 31-cent discount with steady action so far. KC March
chart support is the 20-day at $6.29, and resistance is the upper Bollinger
Band at $6.49, which we are testing at midday.
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
(c) Copyright 2021 DTN, LLC. All rights reserved.
Get your local Cash Bids emailed to you each morning from DTN – click here
to sign up for DTN Snapshot.