DTN Midday Grain Comments 03/23 10:50

DTN Midday Grain Comments 03/23 10:50 Corn Futures Mixed, Beans Down Double Digits Corn trade is narrowly mixed; beans are 24 to 26 cents lower, and wheat trade is flat to 8 cents higher. The U.S. stock market is firmer with the S&P up 60 points. The U.S. Dollar Index is 0.20 lower. Interest rate products are mixed. Energies are higher with crude up 75 cents and natural gas up 5 cents. Livestock trade is mostly lower. Precious metals are higher with gold up $37.00. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is narrowly mixed; beans are 24 to 26 cents lower, and wheat trade is flat to 8 cents higher. The U.S. stock market is firmer with the S&P up 60 points. The U.S. Dollar Index is 0.20 lower. Interest rate products are mixed. Energies are higher with crude up 75 cents and natural gas up 5 cents. Livestock trade is mostly lower. Precious metals are higher with gold up $37.00. CORN: Corn trade is mixed at midday Thursday with two-sided action as early strength gives way with soybean drag action off the high while spreads remain solid and export demand continues to surface. Ethanol margins will need more help from unleaded to boost blender action, with old crop corn firming and spring driving demand off to a good start. Basis has continued to generally drift back higher. Weekly export sales were strong at 3.1 million metric tons of old crop and 193,000 of new, along with another announcement of sales to China with 123,000 metric tons sold Thursday. The second crop in Brazil is heading toward the better part of the growing season with trade watching forecasts into April for development. On the May chart, we are just above the 20-day which is now support at $6.32 and resistance is at the $6.42 3/4 high printed on the third. SOYBEANS: Soybean action is 24 to 26 cents lower at midday with early gains giving way to aggressive fund selling and weaker spreads during the day session, with products leading us lower as we get increasingly oversold. Meal is $9.00 to $10.00 lower, and oil is 2.15 cents to 2.25 cents points lower with crush margins seeing further pressure. With South American new crop beans becoming available export news is expected to remain quieter with weekly sales at 152,500 metric tons of old crop, 199,000 of new; 121,000 of meal and 10,800 of oil. Basis has generally remained solid short term with the market still showing a substantial inverse. May chart resistance is now at the lowest major moving average, the 200-day, at $14.59 with support at the $14.21 3/4 fresh low scored Thursday. WHEAT: Wheat trade is flat to 8 cents higher with KC action leading as we fade from the early highs as row crops lose momentum with spread trade continuing to firm up. Weather will continue to support KC action with the western plains to continue to struggle. The weaker dollar will add support if sustained, but continued Matif selling pressure will lean more on Chicago action. Weekly export sales were soft at 125,600 metric tons old crop nd 13,000 of new. Little other change is noted on the world scene for now as India presses into harvest and the Grain Corridor is once again on the back burner for now. On the KC May chart, the 20-day is support at $8.14 with the 50-day resistance up at $8.43, which was the area of our Tuesday high. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.