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DTN Midday Grain Comments     02/25 11:09

   Grains Mixed at Midday

   Corn is narrowly mixed at midday, soybeans are 2 to 4 cents higher, and 
wheat is flat to 3 cents higher. 

By David Fiala
DTN Contributing Analyst

 General Comments



   The U.S. stock market is weaker with the Dow down 335. The dollar index is 
40 lower. Interest rate products are weaker. Energies are weaker with crude 
down $0.75. Livestock trade is mostly lower. Precious metals are weaker with 
gold down 25.00.


   Corn trade is narrowly mixed at midday with trade looking to collect itself 
after the headline selling to start the week. Ethanol margins remain tight with 
ethanol futures holding the low end of the range, while the energy complex sees 
further pressure. Corn basis remains steady, with little change in recent days 
but more open weather should help movement along with March basis contracts 
coming due this week. On the March contract support is the lower Bollinger Band 
and the fresh lows at $3.70 marked yesterday, with resistance at the lower 
Bollinger band at $3.74, which we tested overnight.


   Soybean trade is 2 to 4 cents higher at midday with trade working back off 
the lows from yesterday. Meal is flat to $1.00 higher, and oil 20 to 30 points 
lower. South America continues to make good progress with weather and harvest 
moving forward with little change on the horizon with some rain delays in 
Brazil keeping harvest off the average pace. The Brazilian real remains very 
cheap as well hurting U.S. export competitiveness near term with new lows 
scored this week, but some strength this a.m. New-crop soybeans will need to 
gain vs. corn to provide an acreage incentive ahead of planting in the U.S. 
with little progress so far this spring. The March soybean chart support is the 
lower Bollinger Band at $8.69, with resistance the 20-day at $8.85.


   Wheat trade is flat to 3 cents higher with trade turning back positive 
midday after early weakness. Weather threats for the Plains remain limited with 
mostly warmer short term weather. Kansas City is at an 84-cent discount to 
Chicago, widening a nickel from the a.m. while Minneapolis is back to a 22 cent 
discount as well, narrowing sharply from last week's action. Partial condition 
reports yesterday showed no major issues so far for the Plains states. World 
export business has been quieter in recent days. The March Kansas City chart 
support is $4.50 with resistance the lower Bollinger Band at $4.56. 

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


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