DTN Midday Grain Comments 02/21 11:29
Grains Mixed at Midday
Soybeans are the midday leader, with corn flat, and wheat weaker.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher at midday with the Dow futures up
135 points. The interest rate products are higher. The dollar index is 20
higher. Energies are flat to lower with crude down 0.30. Livestock trade has
cattle sharply lower. Precious metals are mixed with gold up $1.00.
Corn trade is 1 cent higher at midday with trade bouncing back from
overnight weakness after the soft finish yesterday. Soybeans are providing
spillover support along with Argentine weather. Ethanol margins are narrowing
with corn at the upper end of the range, but remain mostly positive with
ethanol futures edging higher. U.S. export values should remain pretty
competitive at current U.S. offers, but the daily wire has been quieter in
recent days. Double-crop areas in Brazil look to build some moisture in the
coming days. On the March chart support is at the 10-day at $3.66 with the
20-day at 3.62 below that, with the 200-day moving average at $3.76 the highest
moving average and major resistance.
Soybean trade is 5 to 8 cents higher at midday with trade coming back from
the soft start overnight after failing to hold gains yesterday. November trade
did score a new high. Meal is $1 to $2 higher and oil is 30 to 40 points
higher. The weather pattern looks to keep Argentina dry, and Brazil wet in the
near term, which is limiting downside. There should volatility moving forward
with the failure to hold new highs scored Tuesday, and trade filling the gap
left to start the week overnight. Early Brazilian harvest will continue despite
being slowed by rains, causing some crop losses. On the March, support is the
10-day moving average at $10.08, with resistance the $10.39, which is the
six-month high scored Tuesday.
Wheat trade is flat to 6 cents lower with soft wheat holding up the best at
midday; with eastern U.S. growing areas are in line for rain in the near term,
but dry spots persisting to the west. The dollar is higher again at midday, but
remains below 90 on the index. The Russian crop will continue to be watched
with less cover than usual, with Black Sea values continuing to edge higher. On
the March Kansas City wheat chart, support is at the 200-day moving average at
$4.71 which we are below at midday, and then the 20-day at $4.65 with
resistance the recent high at $4.84 1/2.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Advisor.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
Copyright 2018 DTN/The Progressive Farmer. All rights reserved.
Your local weather forecast from DTN can be sent to your email every morning free through DTN Snapshot