DTN Midday Grain Comments 04/28 11:02

DTN Midday Grain Comments 04/28 11:02 Soybean Futures Prices are Lower at Midday; Corn, Wheat Mixed Corn futures are flat to 2 cents higher at midday Thursday; bean futures are 1 to 6 cents lower; wheat futures are 2 cents lower to 3 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the DOW 150 points higher. The U.S. Dollar Index is 60 points higher. Interest rate products are weaker. Energies are mixed with crude 1.60 higher and natural gas up .30. Livestock trade is mixed. Precious metals are weaker with gold down 1.00. CORN: Corn futures are flat to 2 cents higher at midday with strong spread action turning weaker after July scored fresh highs again. China returned to the daily export wire with 1.088 million metric tons (mmt) booked, split between old and new crop. The ethanol margins will continue to be squeezed by input costs with spring driving demand and slowly sliding stocks to provide support. The second crop in Brazil will continue to head toward pollination with some holes remaining in the forecast. U.S. weather is wetter for most in the short term, with the second week looking more conducive to progress. Weekly export sales were solid overall at 866,800 metric tons (mt) of old crop and 843,400 mt of new. On the July contract chart, we have support at the 20-day moving average at $7.71 with resistance at the new contract high of $8.23 1/4 printed Thursday morning. SOYBEANS: Soybean futures are 1 to 6 cents lower with rangebound action continuing in the short term with fresh bullish news needed to push trade to fresh highs after trade was unable to extend at midweek and early buying faded again. Meal is $7.00 to $8.00 lower and oil is 60 to 70 points higher. Indonesia expanded their palm oil ban to encompass raw oil as well, helping to push oil values again, but they faded from the highs. The daily export wire was quiet after the recent run of new-crop sales, with the weekly sales mixed at 481,300 mt of old crop and 580,000 mt of new; 203,000 of meal; and 3,500 of oil. South American harvest will head for the homestretch with early planting picking up steam. New-crop November has gained a little versus corn in recent days but remains at a disadvantage and slow corn planting is likely to help defend soybean acres if sustained. On the July soybean chart, we have resistance at the Upper Bollinger band at $17.37. Support is at the $16.57 20-day moving average, which we remain solidly above. WHEAT: Wheat futures are 2 cents lower to 3 cents higher with Minneapolis action leading as planting remains slow with little change for the Plains in the short term. The dollar making new highs may limit upside further if sustained. Little change is expected in the Black Sea region for now with Middle East tenders still slow in developing. KC wheat is back to a 47-cent discount to Minneapolis, widening significantly so far this week, and at a 57-cent premium to Chicago, narrowing significantly from the start of the week. Weekly export sales remain soft at 32,300 mt of old crop and 124,300 mt of new. The KC July chart has resistance at the fresh high at $12.02 1/4 scored last week with the upper Bollinger Band at $12.31 just above that, and the 20-day moving average well below that market at $11.27. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.