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DTN Midday Grain Comments 02/25 10:53

25 Feb 2021
DTN Midday Grain Comments 02/25 10:53 Grains Tumble Into Midday Thursday Corn is 7 to 9 cents lower, soybeans are 14 to 16 cents lower and wheat is 6 to 12 cents lower. David M. Fiala DTN Contributing Analyst The U.S. stock market is weaker with the Dow down 180 points. The U.S. Dollar Index is 0.36 lower. Interest rate products are weaker. Energies are flat with crude unchanged. Livestock trade is mixed. Precious metals are weaker with gold down $22.00. CORN: Corn trade is 7 to 9 cents lower at midday with new crop closer to steady as spreads continue to weaken, albeit at the upper end of the range as March is headed into delivery. Ethanol production should continue to rebound with trade looking for better margins into the second quarter. Trade will continue to look for further export-sale confirmations with the daily wire remaining quiet Thursday. Shipping pace should recover further this week with weekly sales disappointing at 453,300 metric tons of old crop and 145,900 of new crop. Basis should remain sideways short term. Double crop planting in Brazil is well underway as well but behind the usual pace. On the May contract, support is the 20-day at $5.47 with the upper Bollinger Band at $5.61 as resistance. SOYBEANS: Soybeans is 14 to 16 cents lower with trade turning lower after disappointing export sales and light cancellations, and spread trade is weakening at midday. Meal is $2.00 to $3.00 lower and oil is 0.20 cent to 0.30 cent lower. 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, as well as improved weather for moving remaining soybeans. Brazil should catch rains short term for most as harvest is underway but behind the usual pace. Export shipments are picking up steam, with Argentina action trending warmer and drier over the next few days. Weekly export sales soft at 167,800 metric tons of old crop and 70,800 of new crop; 160,200 metric tons of meal and 4,400 metric tons of oil. The May chart has resistance at the fresh high at $14.45 3/4, with support the 20-day at $13.78. WHEAT: Wheat trade is 6 to 12 cents lower with spring wheat leading as trade works to consolidate recent gains with support from weather and the dollar. The dollar broke below 90 points on the index overnight and is near contract lows. The Plains should see warmer weather, bringing the crop closer to exiting dormancy soon. KC is at 25-cent discount to Chicago, with Minneapolis at 26-cent discount and mixed action so far. Weekly export sales were poor at 167,700 metric tons of old crop and 14,800 of new crop. KC May chart support is the 20-day at $6.36, with resistance the fresh high at $6.62. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.