DTN Midday Grain Comments 02/27 12:10
Corn, Beans, Wheat Higher at Midday Tuesday
Corn trade is 2-3 cents higher. Beans are 5-7 cents higher and wheat trade
is 9-13 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is mixed at midday with the S&P 2 points lower. The
dollar index is 7 points lower. The interest rate products are firmer. Energies
have crude .80 higher and natural gas .06 higher. Livestock trade is mixed.
Precious metals are mixed with gold up $13.
Corn trade is 2-3 cents higher at midday with trade working to build on the
reversal from Monday with softer spread action and oversold conditions eased a
bit with a still substantial short overhanging the market. Ethanol margins
remain stable with unleaded phasing in spring blends which boosts blender
margins along with the cheaper corn and natural gas while nearby supplies
remain ample and limiting to upside.
The daily wire was quiet for today. Basis has stayed steady as we head
towards the end of the month and the farmer position is expected to weigh
further as basis contracts get rolled or priced heading towards first notice
day with most of that business likely wrapped up by the end of day. Early
second-crop corn should continue to progress in Brazil with planting pace ahead
of average. On the March chart, the 20-day at $4.26 is nearby resistance with
the lower Bollinger Band at $3.96 1/4 just above the $3.95 1/4 fresh low as
Soybean trade is 5-7 cents higher with mixed product action so far with
trade looking to build some momentum from the lower end of the range today with
early meal strength faltering. Meal is $1 to $2 lower and oil is 90 to 100
points higher. South American weather should allow for Brazil harvest to keep
moving along with little in the way of near-term changes for Argentina.
The daily wire saw 123,000 metric tons of beans sold to unknown. Basis
should remain flat short term domestically as March goes into delivery. The
March soybeans have resistance at the 20-day moving average of $11.79. The
$11.25 1/2 fresh low scored this morning is nearby support with the lower
Bollinger Band just above that at 11.30.
Wheat trade is 9-13 cents higher at midday with trade seeing mostly firmer
spread action while trying to consolidate the stronger start to the week with
further follow-through needed to get trade excited with the upfront inverses
persisting. The Plains will see warmer-than-normal temps persist into March
with a midweek cold snap and better moisture possibilities into mid-month.
The dollar has shifted sideways with Matif wheat holding just above the
recent lows with light strength this morning. On the KC March chart, resistance
is at the 20-day moving average at $5.97 1/2, which we are just below. Support
is the fresh low at $5.63 with the lower Bollinger Band just below that at
David Fiala can be reached at firstname.lastname@example.org.
Follow him on X, formerly Twitter, @davidfiala.
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