DTN Midday Grain Comments 03/31 10:38

DTN Midday Grain Comments 03/31 10:38 Corn, Soybean, Wheat Futures Higher Ahead of USDA Report Corn futures are 3 to 5 cents higher at midday Friday; soybean futures are 13 to 16 cents higher; wheat futures are 1 to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 5 cents higher at midday Friday; soybean futures are 13 to 16 cents higher; wheat futures are 1 to 8 cents higher. The U.S. stock market is working higher with the S&P up 30 points. The U.S. Dollar Index is 30 points lower. Interest rate products are firmer. Energies are firmer with crude up .20 and natural gas up .08 cents. Livestock trade is firmer. Precious metals have turned mixed with gold off 5.50. CORN: Corn futures are 3 to 5 cents higher at midday with spreads holding with firmer action as we head toward the report. Looking to the report, the average acre guess is 90.88 million acres of corn, with stocks at 7.470 billion bushels (bb) versus 89.4 million acres and 7.758 bb in stock last year. Ethanol margins will need more help from unleaded to boost blender action with unleaded staying rangebound. Basis has continued to generally drift back higher. The daily export wire was quiet for the first time this week. 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 as we get into April. On the May chart we are solidly above the 20-day moving average, which is now support at $6.33, and resistance is at the Upper Bollinger Band at $6.57, which we are just below pre-report. SOYBEANS: Soybean futures are 13 to 16 cents higher at midday with broad buying developing in pre-report action. Meal is $1.00 to $2.00 higher and oil is 120 to 130 points higher. For the report, the trade is looking for 88.242 million acres and 1.742 bb of stocks versus 90.955 million acres and 1.931 bb last year. Basis has generally remained solid in the short term with the market still showing a substantial inverse, albeit just off the highs. May chart support is now at the lower Bollinger Band at $14.23, which we pushed back above Monday, with further support at the $14.05 fresh low scored Friday, while we have pushed above the 20-day moving average at $14.80 at midday. WHEAT: Wheat futures are 1 to 8 cents higher with trade settling into the middle of the recent range in quiet pre-report action with KC leading so far. On the report, trade is looking for all wheat acres at 48.852 million and stocks at 934 million bushels (mb) versus 47.351 million acres and 1.025 bb last year. 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 dollar remains toward the lower end of the range even with strength this morning, while Matif wheat is weaker and weighing on Chicago action again. Little other change is noted on the world scene for now as India presses into harvest and other Northern Hemisphere weather issues are limited with continental Europe generally in good shape. On the KC May Chart the 20-day moving average is support at $8.27 with the fresh high scored in Thursday's trade at $8.96 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.