DTN Midday Grain Comments     02/24 11:08

   Grains Lower at Midday

   Corn is 5 to 6 cents lower at midday, soybeans are 17 to 19 cents lower and 
wheat is 9 to 17 cents lower.

By David Fiala
DTN Contributing Analyst

 General Comments

   

   

   The U.S. stock market is weaker with the Dow down 845. The dollar index is 2 
lower. Interest rate products are weaker. Energies are weaker with crude down 
2.50. Livestock trade is sharply weaker with cattle the downside leader. 
Precious metals are mixed with gold up $25.00.

   CORN

   Corn trade is 5 to 6 cents lower at midday with broad commodity weakness as 
coronavirus concerns intensified over the weekend. Ethanol margins will be 
mixed with corn cheaper and blender margins tighter with ethanol futures 
staying flat. Corn basis remains steady, with little change in recent days, but 
more open weather should help movement along with March basis contracts coming 
due this week. Weekly export inspections were improved at 912,922 metric tons. 
On the March contract, support is the lower Bollinger band and the fresh lows 
at $3.70 marked this morning. Resistance is at the lower Bollinger band at 
$3.75.

   SOYBEANS 

   Soybeans trade is 16 to 18 cents lower at midday with trade scoring new lows 
with ongoing demand concerns. Meal is $3.00 to $4.00 lower and oil is 105 to 
115 points lower. South America continues to make good progress with weather 
and harvest moving forward with little change on the horizon with some rain 
delays in Brazil keeping harvest off the average pace. The Brazilian real 
remains very cheap, as well, hurting U.S. export competitiveness near term with 
new lows scored this week. The dollar snapped back on flight-to-safety trade. 
New-crop soybeans will need to gain vs. corn to provide an acreage incentive 
ahead of planting in the U.S. with little progress so far this spring. Weekly 
export inspections were disappointing at 594,536 metric tons. USDA announced 
163,290 metric tons sold to Mexico for old crop. The March soybean chart 
support is the lower Bollinger band at $8.71, with resistance the 20-day at 
$8.88.

   WHEAT

   Wheat trade is 9 to 18 cents lower at midday with spillover pressure from 
row crops and the strong dollar fueling selling to open the week. Weather 
threats for the Plains remain limited with mostly warmer short-term weather. KC 
is at a 79-cent discount to Chicago, regaining a nickel the last few days while 
Minneapolis is back to a 19-cent discount, as well, narrowing sharply from last 
week's action. World export business has been quieter in recent days. Weekly 
export inspections were range bound at 411,523 metric tons. The March KC chart 
support is the lower Bollinger band at $4.58, and resistance the 20-day at 
$4.74. 

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser. 
He can be reached at dfiala@futuresone.com 
Follow him on Twitter @davidfiala


(AG)

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