DTN Midday Grain Comments 02/29 13:15
Corn, Wheat Higher, Beans Lower at Midday Thursday
Corn trade is flat to 1 cent higher. Beans are 2-3 cents lower and wheat
trade is 2-4 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is mixed at midday with the S&P 10 points higher. The
dollar index is 11 points higher. The interest rate products are firmer.
Energies have crude .30 higher and natural gas .03 lower. Livestock trade is
mixed with hogs leading. Precious metals are firmer with gold up $10.
Corn trade is flat to a penny higher overnight with two-sided action as we
faded from strength this morning after the initial selloff turned to buying.
Ethanol margins are seeing a little pressure from the corn rebound while
blenders will benefit as spring blends become more widespread.
The daily wire was quiet again today with weekly sales remaining solid at
1.08 million metric tons (mmt) old crop and 165,000 of new. Basis will likely
see some short-term pressure as May becomes from month with the extra farmer
pricing in recent days with stabilization likely into the weekend. Early
second-crop corn should continue to progress in Brazil with planting pace ahead
of average with eyes turning towards longer-term weather. On the May chart, the
20-day at $4.36 is nearby resistance with the lower Bollinger Band at $4.10
just above the $4.06 3/4 fresh low as support.
Soybean trade is 2-3 cents lower at midday with action trying to bounce off
another fresh low scored overnight with better product action developing. Meal
is $1 to $2 higher and oil is flat to 10 points higher. South American weather
should allow for Brazil's harvest to keep moving along with some late dryness
lingering in Argentina.
The daily wire was quiet today with weekly sales remaining soft at 159,700
metric tons (mt) of beans, meal was good at 456,200 mt old crop, and 6,400 of
new, along with 3,000 of oil. Basis should remain flat short term domestically
as March goes into delivery. May soybeans have resistance at the 20-day moving
average at $11.76. The $11.30 1/4 fresh low scored this morning is nearby
support with the lower Bollinger Band just below that at 11.26.
Wheat trade is 2-4 cents higher at midday with trade firming back off the
overnight selling turning to a bit of strength during day trade with firmer
spread action. The Plains will see warmer-than-normal temps persist into March
with the midweek cold past us and better moisture possibilities into midmonth.
The dollar is moving back towards the upper end of the recent range with
Matif wheat holding just above the recent lows with pressure today. Weekly
export sales remained rangebound at 327,300 mt of old crop, and -5,200 of new.
On the KC May chart, resistance is at the 20-day moving average at $5.90.
Support is the fresh low at $5.56 3/4 with the lower Bollinger Band just below
David Fiala can be reached at firstname.lastname@example.org.
Follow him on X, formerly Twitter, @davidfiala.
(c) Copyright 2024 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up