DTN Midday Grain Comments 03/16 10:50

DTN Midday Grain Comments 03/16 10:50 Corn Futures Higher at Midday; Soybean, Wheat Futures Lower Corn futures are 3 to 4 cents higher at midday Thursday; soybean futures are 5 to 6 cents lower; wheat futures are 8 to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents higher at midday Thursday; soybean futures are 5 to 6 cents lower; wheat futures are 8 to 9 cents lower. The U.S. stock market is firmer with the S&P 40 higher. The U.S. Dollar Index is 20 points lower. Interest rate products are mixed. Energies are up with crude off .20 and natural gas up .10. Livestock trade is mixed. Precious metals are weaker with gold off 11.00. CORN: Corn futures are 3 to 4 cents higher at midday with spread action remaining firm as trade works back toward the middle of the recent range with spillover from soybeans limiting upside so far. Ethanol margins will continue to work sideways with support from corn values short term while unleaded has faded back toward the lower end of the range, crimping some of the anticipated spring blender gains. Crop development in Brazil will be watched closer as double-crop planting winds up with the forecast drying a little to help wrap things up while Argentina limps toward the finish line. The daily export wire showed more life with 641,000 metric tons (mt) of corn sold to China; this is the third day in a row that corn sales have been reported. Weekly export sales are holding gains at 1.24 million metric tons (mmt) of old crop, and 183,500 of new. Basis has remains flat to firmer. On the May chart, support is the lower Bollinger Band back below the market at $5.87 and the 20-day moving average is well above the market at $6.40. SOYBEANS: Soybean futures are 5 to 6 cents lower with spread action firm as trade stays just above nearby support levels with overnight strength fading. Meal is $3.50 to $4.50 lower and oil is 60 to 70 points higher with crush margins working to stabilize. Weekly export sales improved at 665,000 mt of old crop, 66,100 of new crop, with meal at 220,100 of new and 35,000 of old, and 3,900 of oil. February crush data was close to expectations and a bit stronger than a year ago. Trade will be looking for the Brazil export pace to extend the strong recent movement with harvest moving along, with Argentina to catch some short-term moisture potentially as the growing season winds down. New crop continues to need more strength to swing acres with losses so far this week. Basis remains mostly sideways to soft near term. May chart resistance is at the $15.11 20-day moving average, which we are solidly below with the upper Bollinger Band at $15.47 as further resistance, and the Lower Bollinger Band at $14.78 as support, which we are solidly above. WHEAT: Wheat futures are 8 to 9 cents lower at midday with trade consolidating the recent rebound with flat to firmer spread action up front and little other wheat specific news. The KC wheat areas look to remain on the shorter end of moisture over the next couple of weeks with short-term cold weather with SRW seeing moisture. The Northern Plains will remain cold and wet ahead of planting. World wheat weather remains mixed short term with India harvest starting in some areas. Matif wheat values are weaker after a strong finish Wednesday with the grain corridor expected to extend at the end of the week. Weekly export sales showed improvement at 336,700 mt old crop and 155,900 mt new. On the chart, KC May has the lower Bollinger band at $7.60 and a fresh low scored at $7.73 3/4 as support, while the 20-day moving average remains above the market at $8.28. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.