DTN Midday Grain Comments 03/07 10:58

DTN Midday Grain Comments 03/07 10:58 Soybean, Corn Futures Lower at Midday; Wheat Mixed Corn futures are flat to 1 cent lower at midday Tuesday; soybean futures are 9 to 10 cents lower; wheat futures are 7 cents lower to 4 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 1 cent lower at midday Tuesday; soybean futures are 9 to 10 cents lower; wheat futures are 7 cents lower to 4 cents higher. The U.S. stock market is weaker with the S&P down 40. The U.S. Dollar Index is 100 points higher. Interest rate products are mixed. Energies are mixed with crude up .20 and natural gas off .42. Livestock trade is mostly lower. Precious metals are weaker with gold off $32.00. CORN: Corn futures are flat to 1 cent lower at midday with trade shifting toward a sideways track ahead of the WASDE report Wednesday with mixed spread action. On the report, trade is looking for old-crop corn carryout at 1.308 billion bushels (bb) on a range of 1.280 bb to 1.360 bb with Argentina expected to be reduced as well. Ethanol margins remain rangebound with spring demand phasing in. Crop development will continue to be watched in Brazil with little change to the pattern in recent days as double-crop corn planting hits the homestretch while Argentina continues to struggle. Basis has shown pockets of strength. On the May chart, support is the fresh low at $6.22 1/4 with the lower Bollinger Band back below the market at $6.25, and the 20-day moving average well above the market at $6.60. SOYBEANS: Soybean futures are 9 to 10 cents lower at midday with trade fading back from the test of the upper end of the range seen Monday with spread action softening. Meal was flat to $1.00 lower, and oil was 160 to 170 points lower. On the report Wednesday, trade is looking for a domestic carryout at 220 million bushels (mb), with a range of 200 mb to 250 mb, with Argentina production expected to continue trending lower. Trade will be looking for the Brazil export pace to extend the strong recent movement with harvest pace catching up even with some drier weather to help in Southern Brazil, with Argentina drier and warmer short term for the most part with the recent pattern continuing. New crop has faded a little versus corn this morning but generally holding recent gains. Basis remains mostly sideways to soft near term. May chart support is at the $15.19 20-day moving average, which we have tested this morning with the upper Bollinger Band at $15.48 as further resistance, with the Lower Bollinger Band at $14.90, which below that as support. WHEAT: Wheat futures are 7 cents lower to 4 cents higher with winter wheat taking the lead this morning as we work to ease oversold conditions despite the outside market headwinds. The KC wheat areas look to remain on the shorter end of moisture with SRW seeing plenty of moisture, with the Northern Plains mixed heading towards planting. On the report, trade is looking for domestic carryout at 573 mb with a range of 557 mb to 612 mb. Matif wheat values are helping keep pressure in place with expectations of no changes to the grain corridor as the Ukraine deal renewal comes due. The strong dollar will continue to limit upside with trade surging back to the upper end of the range. On the chart, KC May is just above the lower Bollinger Band at $7.84 with trade washing to new calender year lows at the open of the day session at $7.94. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.