DTN Grain Midday: Slight Strength in Soybeans

The Port of Rosedale - Rosedale, Mississippi - Mississippi River ©Debra L Ferguson Stock Photography

Soybeans are lightly higher at midday with corn and wheat weaker.

CORN

Corn trade is 4 to 5 cents lower at midday with trade working to hold the lows from last Friday with broad fund selling again. South America crop progress looks to remain on track for corn. Ethanol margins remain supported by the softer corn futures, while the energy complex holds up better with ethanol futures down to $1.32.

Corn basis will be supported by ongoing weather issues nearby. Early planting is going in the south as well with weather concerns likely to build in the north into March with flooding in the mid-South causing problems now and an active month expected moisture-wise along with the cold temps. Weekly export sales were good at 969,700 metric tons of old crop, and 280,900 of new.

On the May chart support is at the $3.66 3/4 low scored Friday, followed by the $3.63 1/4 contract low. Resistance is at the $3.75 10-day moving average.

SOYBEANS

Soybean trade is 1 to 2 cents higher at midday with two sided trade and disappointing export sales today. Meal is 0.50 to 1.50 higher and oil is 10 to 20 points lower. South America weather should maintain the recent pattern in the coming days with Brazil harvest moving along and normal progress in Argentina.

Crush margins remain strong with meal hanging around $306 a ton. Trade progress is believed to us fairly close to a deal closing soon but specifics remain sparse with nothing new in the last 24 hrs. The daily export wire has been quiet so far this week with weekly sales disappointing at 311,400 metric tons of old crop, and 72,000 of new, with meal at 230,500 metric tons of old crop, and -28,700 of new, and 8,100 of oil.

On the May chart support is at the $8.98 low printed this morning with resistance at the $9.14 10-day moving average.

WHEAT

Wheat trade is 1 cent higher to 8 cents lower with trade making new lows and not seeing support despite good exports, with spring wheat continuing to hold up the best. Minneapolis trade has extended its premium again after the early week losses, with Kansas City/Chicago trade wider again.

Export news has been quieter lately. The dollar has come back to 97.35 on the index making new highs on ECB easing. Cold weather is expected to keep some stress on the plains in the near term with good snow cover for the most part, and spring wheat planting likely to start slow this year. Weekly export sales were good at 621,700 metric tons of old crop, and 205,500 of new.

On the May Kansas City chart support is low at $4.30 fresh low with resistance at the 10-day at $4.46.

General Comments

The U.S. stock market indices are weaker with the Dow 230 points lower. The interest rate products are weaker. The dollar index is 55 points higher. Energies are mixed, with crude up 0.15. Livestock trade is mostly higher. Precious metals are weaker with gold down 1.00.

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