DTN Midday Grain Comments 03/08 10:47

DTN Midday Grain Comments 03/08 10:47 Soybean Futures are Higher at Midday; Wheat Lower; Corn Mixed Corn futures are narrowly mixed at midday Wednesday; soybean futures are 6 to 7 cents higher; wheat futures are 2 to 7 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are narrowly mixed at midday Wednesday; soybean futures are 6 to 7 cents higher; wheat futures are 2 to 7 cents lower. The U.S. stock market is mixed with the S&P unchanged. The U.S. Dollar Index is 15 points lower. Interest rate products are mixed. Energies are weaker with crude off 1.00 and natural gas off .12. Livestock trade is mostly lower. Precious metals are mixed with gold up $5.00. CORN: Corn futures are narrowly mixed with action sideways ahead of the WASDE report at 11 a.m. CST with firmer spread action so far. On the report, trade is looking for old-crop corn carryout at 1.308 billion bushels (bb) on a range at 1.280 bb to 1.360 bb with Argentina expected be reduced as well. Ethanol margins remain rangebound with spring demand phasing in with the weekly report showing production up 7,000 barrels per day (bpd), and stocks up 525,000 barrels. Crop development will continue to be watched in Brazil with little change to the pattern in recent days with double-crop corn planting winding down while Argentina continues to struggle with potential rains next week unlikely to make a material difference. 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 $6.19, and the 20-day moving average well above the market at $6.58. SOYBEANS: Soybean futures are 6 to 7 cents higher as trade continues to hold above $15.00 nearby with flat to firm spread action pre-report with product support. Meal is $2.00 to $3.00 higher and oil is 45 to 55 points higher. On the report, trade is looking for a domestic carryout at 220 million bushels (mb), on a range of 200 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 resistance is at the $15.19 20-day moving average, which we are testing pre-report 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 2 to 7 cents lower at midday with Chicago the downside leader as trade remains oversold heading into the report with little fresh news and mixed spread action. The KC wheat areas look to remain on the shorter end of moisture over the next couple of weeks with SRW seeing plenty of moisture, with the Northern Plains mixed heading toward planting. On the report, trade is looking for domestic carryout at 573 mb on a range of 557 mb to 612 mb. Matif wheat values are soft, helping to keep pressure in place with expectations of no changes to the grain corridor as the renewal comes due. The strong dollar will continue to limit upside with trade surging back to the upper end of the range Wednesday on the hawkish Fed comments. On the chart, KC May has the lower Bollinger band at $7.76 and a fresh low scored overnight at $7.89 3/4 as support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.