DTN Midday Grain Comments 03/21 10:49

DTN Midday Grain Comments 03/21 10:49 Wheat Futures Lower at Midday; Corn Flat-Lower; Soybeans Mixed Corn futures are flat to 1 cent lower at midday Tuesday; soybean futures are narrowly mixed; wheat futures are 1 to 11 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 1 cent lower at midday Tuesday; soybean futures are narrowly mixed; wheat futures are 1 to 11 cents lower. The U.S. stock market is firmer with the S&P 35 higher. The U.S. Dollar Index is 20 points lower. Interest rate products are weaker. Energies are mixed with crude up 1.10 and natural gas off .05. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold off 30.00. CORN: Corn futures are flat to 1 cent lower with spread action remaining firmer with early buying giving way to midday weakness as buying interest waned. Ethanol margins will continue to work sideways with corn action narrowing things a little while driving demand starts to work higher seasonally with a fast start to the week. Crop development in Brazil will be watched closer as double-crop planting winds up with the forecast drying a little to help for now with potential concerns if it shows the dry season starting while Argentina limps towards the finish line. The daily export wire saw action again with China securing another 136,000 metric tons (mt) of corn. Basis has remained flat to firmer. On the May chart, support is the lower Bollinger Band back below the market at $6.01, and the 20-day moving average at $6.34, which we faded from this morning. SOYBEANS: Soybean action is narrowly mixed with early gains fading again as we remain at the lower end of the recent range with trade needing a bullish spark to sustain buying. Meal is $2.00 to $3.00 higher and oil is 160 to 170 points lower with oil unable to escape the low end of the range. The daily export wire has been quiet as we get deeper into Brazil's prime export season. Trade will be looking for the Brazil export pace to improve with the strong recent movement with harvest moving along with drier weather short term likely to help with Argentina to catch some isolated moisture as the growing season winds down with Brazil basis fading. New crop continues to see losses vs. corn as the time to bid for acres grows short with early strength giving way again Tuesday. Basis remains mostly sideways to soft near term. May chart resistance is at the $15.05 20-day moving average, which we are solidly below with the upper Bollinger Band at $15.44 as further resistance, and the Lower Bollinger Band at $14.72, which we tested Monday before bouncing. WHEAT: Wheat futures are 1 to 11 cents lower at midday with early gains and spread strength turning to selling with soft euro values and ags shifting back towards risk-off at midday turning trade to selling. The KC wheat areas look to remain on the shorter end of moisture over the next couple of weeks with short-term weather warming up a little with SRW seeing moisture, with the Northern Plains mixed ahead of planting. World wheat weather remains mixed short term with India harvest starting in some areas with exports likely to be delayed until later. Matif wheat values are weaker again as they have limited upside with the recent weakness. On the chart, KC May has the 20-day moving average at support at $8.19 that we are testing at midday, with the Upper Bollinger Band well above the market at $8.61. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.