DTN Midday Grain Comments 02/23 10:50

DTN Midday Grain Comments 02/23 10:50 Soybeans Surging Midday Tuesday Corn is 4 to 5 cents higher, soybeans are 34 to 36 cents higher and wheat is 2 to 4 cents lower. David M. Fiala DTN Contributing Analyst The U.S. stock market is weaker with the Dow down 50 points. The U.S. Dollar Index is 0.08 higher. Interest rate products are mixed. Energies are weaker with crude down $0.30. Livestock trade is mixed. Precious metals are weaker with gold down $5.50. CORN: Corn trade is 4 to 5 cents higher at midday Tuesday with trade building on the strong finish to Monday's trade and mixed spread action with spillover support from soybeans as the December contract scores new highs again. Ethanol production should start to recover as the country thaws further this week, with demand likely to rebound after a sharp contraction last week, while margins are supported by the energy complex. Trade will continue to look for further export-sale confirmations with the daily wire remaining quiet. Basis should remain sideways short term. Double crop planting in Brazil is well underway as well. On the March contract, support is the 20-day at $5.46 with the upper Bollinger Band at $5.62 as resistance. SOYBEANS: Soybeans is 33 to 35 cents higher at midday, with trade pushing 40 cents higher at times, and strong spread action and November soybeans scoring new highs. Meal is $6.50 to $7.50 higher and oil is 1.15 cents to 1.25 cents higher. Basis will likely remain flat at strong levels with slower movement as the export program winds down and a bigger focus is on crush margins, with improved weather for moving remaining soybeans. Brazil should catch rains short term for most with early harvest underway and behind the usual pace. Argentina action trending warmer and drier over the next week. November soybeans scored new highs along with December corn as they try to make a late acre push. The March chart has resistance at the fresh high at $14.25, with support the 20-day at $13.74. WHEAT: Wheat trade is 2 to 4 cents lower at midday with trade fading off the strong finish on Monday. The dollar is rebounding slightly while the U.S. thaws and Russia freezes. The dollar looks to be settling into a 90-91 range on the index and trade remains in the lower end of the range despite the rebound Tuesday morning. The Plains should see snow cover lift this week with sustained warmer weather likely to start growth, if it shows up across Kansas. KC is at 21-cent discount to Chicago; Minneapolis is at a 26-cent discount with steady action so far. KC March chart support is the 20-day at $6.29 and resistance is the upper Bollinger Band at $6.48. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.