DTN Midday Grain Comments 02/16 11:37
Grains Mixed at Midday
Choppy to lower action across the board at midday.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher at midday with the Dow futures up
120 points. The interest rate products are lower. The dollar index is 26
higher. Energies are mixed with crude up 0.30. Livestock trade is mostly lower.
Precious metals are higher with gold up $3.40.
Corn trade is narrowly mixed at midday with trade remaining at the upper end
of the range. Ethanol margins should remain steady in the near term with the
rebound in the energy market, with futures edging slightly higher this morning.
USDA announced 116,000 metric tons corn sold to Japan. U.S. export values
should remain pretty competitive at current U.S. offers. On the March chart,
support is at the 10-day at $3.65 with the 20-day at 3.61 below that, with the
200-day moving average at $3.76 the highest moving average and major
Soybean trade remains volatile with trade 1 to 4 cents lower at midday with
a 16 cent range so far with trade coming back off dime-lower trade earlier in
the session. Meal is narrowly mixed and oil is flat to 10 lower. There should
volatility moving forward with the moves to new highs for the move this week
and the important weather month of February in South America as it gets deeper
into the growing system. The Argentine weather picture continues to be watched
with little relief expected in the next week. Early Brazilian harvest will
continue despite being slowed by rains, causing some crop losses. The USDA
announced 24,400 metric tons of oil sold to South Korea. On the March chart,
support is the 10-day moving average at $9.94, with resistance the $10.28,
which is the six-month high scored this morning.
Wheat trade is narrowly mixed at midday with trade trying to pull back
slightly with fresh bullish news needed to take trade higher from here with
ample world stocks remaining a limited factor despite weather. The dollar is
back to the lower end of the range. The Plains look to remain dry in the short
term, with the best chances for rain to the east. The Russian crop will
continue to be watched with less cover than usual, and India shaping up to
potentially import more bushels the coming year. On the March chart, Kansas
City wheat support is at the 10-day and 200-day moving average at $4.72, and
then the 20-day at $4.60 then 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 firstname.lastname@example.org
Follow him on Twitter @davidfiala
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