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DTN Midday Grain Comments     02/24 11:28

   Corn, Beans Lower at Midday

   Slow midday trade with wheat down around a nickel, corn down 2 and beans 
mixed.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are lower with the Dow futures down 65 points. 
The interest rate products are higher. The dollar index is steady. Energies are 
lower with crude down 0.40. Livestock trade is mostly lower. Precious metals 
are higher with gold up $2.  

   CORN

   Corn trade is 2 cents lower at midday which has us at the low of a very slow 
3 cent trading range so far. Outside markets are providing limited direction, 
the trend of the week is down, so we may be starting to see some long 
liquidation here at midday. The USDA Agricultural Outlook Forum this week has 
provided limited meaningful news, rather confirming our comfortable supply 
situation is expected to remain in the year ahead. Granted weather could always 
change that, but the demand side of the equation remains good. This should 
limit downside around the low side of the trading range. Conference sessions 
today discussed the large and growing livestock population that will continue 
to keep demand for corn strong. On the May corn chart support is at the $3.69 
50-day, then the $3.64 100-day. Resistance is at the $3.76 20-day, then the 
$3.79 10-day moving averages. 

   SOYBEANS

   Soybean trade is mixed at midday with new crop November a penny lower and 
nearly March and May contracts up fractionally. Meal is near $1.70 a ton lower 
and soybean oil is up 22 points. Soybeans tried to rally, were up around a 
nickel, but have faded at midday. The weekly trend is lower with futures moving 
to a one-month low, but we are holding at lower support levels. The trading 
range has only been 7-8 cents but if we get below support this slow day could 
turn active this afternoon. Demand news remains good, supply news remains 
negative with a big South American crop coming in that may provide late-day 
harvest pressure. The May 200-day and lowest major moving average is at $10.20; 
this is viewed as key support then the $10.01 3-month low. Resistance is at the 
$10.43 50-day. 

   WHEAT

   Wheat trade is 1 to 6 cents lower across the three markets with light 
spillover pressure from corn at midday. The moisture in the winter wheat areas 
has been welcome and noted for our lower midday trade. The weekly sales number 
yesterday was under a half million tons which is not getting much attention. 
The large domestic and world carryover stocks were a highlight of the wheat 
news this week along with stressed farm incomes. The May Kansas City wheat has 
support at the $4.61 200-day moving average and resistance at the $4.73 10-day 
then the $4.87 seven-month high printed one week ago.  

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser.
He can be reached at dfiala@futuresone.com 
Follow Fiala on Twitter @davidfiala


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