DTN Midday Grain Comments 03/28 10:46

DTN Midday Grain Comments 03/28 10:46 Soybean, Wheat Futures Higher at Midday; Corn Lower Corn futures are 1 to 2 cents lower at midday Tuesday; soybean futures are 13 to 15 cents higher; wheat futures are 2 to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents lower at midday Tuesday; soybean futures are 13 to 15 cents higher; wheat futures are 2 to 8 cents higher. The U.S. stock market is mixed with the S&P off 5 points. The U.S. Dollar Index is 35 points lower. Interest rate products are weaker. Energies are firmer with crude up .25 and natural gas up a penny. Livestock trade is mixed. Precious metals are firmer with gold up 15.00. CORN: Corn futures are 1 to 2 cents lower in quiet midday trade with mixed spread action after the inverses softened to start the week with trade consolidating the upper end of the range with momentum slowing. Ethanol margins will need more help from unleaded to boost blender action with firming corn values crimping margins again despite the uptick in demand. Basis has continued to generally drift back higher. The daily export wire showed 136,000 metric tons (mt) of corn sold to China today as the recent hot streak continues. The second crop in Brazil is heading toward the better part of the growing season with trade watching forecasts into April for development with some concerns on the horizon in Central Brazil short term. On the May chart we are solidly above the 20-day moving average which is now support at $6.32, and resistance is at the Upper Bollinger Band at $6.51, which we tested this morning. SOYBEANS: Soybean futures are 13 to 15 cents higher at midday with firmer spread action as we continue to rebound after coming off oversold conditions with meal back to leading the product complex. Meal is $8.00 to $9.00 higher and oil is flat to 15 points higher. With South American new-crop beans becoming available, export news has remained limited in recent days. China values have slowed their washout as well, helping to find some stability. Basis has generally remained solid short term with the market still showing a substantial inverse even with recent narrowing. May chart support is now at the lower Bollinger Band at $14.22, which we pushed back above Monday with further support at the $14.05 fresh low scored Friday, while the 20-day moving average is well above the market at $14.84. WHEAT: Wheat futures are 2 to 8 cents higher at midday with KC action leading as crop development concerns add support along with the momentum being higher at the moment as the KC/Chicago spread continues to widen at levels not seen for 11 years. Weather will continue to support KC action with the western Plains to continue to struggle with moisture to the east, while early spring wheat progress will be limited with cold and snow delaying the start of the season. The U.S. dollar remains toward the lower end of the range, while Matif wheat is off a little this morning to limit Chicago gains. Little other change is noted on the world scene for now as India presses into harvest and other Northern Hemisphere weather issues are limited for now with Australia planting on the horizon. On the KC May Chart the 20-day is support at $8.19 with the fresh high at $8.73 becoming resistance for now. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.