DTN Midday Grain Comments 04/03 10:52

DTN Midday Grain Comments 04/03 10:52 Soybean, Wheat Futures Higher at Midday; Corn Flat to Higher Corn futures are flat to 3 cents higher; soybean futures are 13 to 16 cents higher; wheat futures are 2 to 6 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 3 cents higher; soybean futures are 13 to 16 cents higher; wheat futures are 2 to 6 cents higher. The U.S. stock market is mixed with the S&P off 5 points. The U.S. Dollar Index is 25 points lower. Interest rate products are firmer. Energies are mostly firmer with crude up 4.40 and natural gas off .13 cents. Livestock trade is mixed with cattle the downside leader. Precious metals have turned mixed with gold up 17.50. CORN: Corn futures are flat to 3 cents higher with upfront spreads a little softer as we back off the early strength as early buying enthusiasm fades a bit. On the report, stocks came in below expectations at 7.40 billion bushels (bb) versus. 7.47 bb expected and 7.758 bb last year. Acres were at 92.0 million versus 90.88 million expected and 88.58 million last year. Ethanol margins will get a boost from unleaded working higher, while firmer corn will limit gains. Basis has continued to generally drift back higher. The daily export wire showed 150,000 metric tons (mt) of new crop sold to Mexico. Weekly export inspections improved at 1.098 million metric tons (mmt). The second crop in Brazil is heading toward the better part of the growing season with trade watching forecasts into April with some concerns on the horizon, while the extended U.S. weather pattern looks to make progress for planting midmonth after the recent storms. 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 $6.62, which we tested and faded from Monday morning. SOYBEANS: Soybean futures are 13 to 16 cents higher at midday with mostly firmer spread action with the broad risk-on trade Monday mornin. But we have pulled back from the highs as the products turns mixed. Meal is $5.50 to $6.50 lower and oil is 110 to 120 points higher. On the report, stocks were 1.685 bb versus 1.742 bb expected and 1.931 bb last year. Acres were 87.5 million versus 88.242 million expected and 87.45 million last year. The daily export report showed 20,000 mt of oil sold to unknown with weekly export inspections inline seasonally at 499,054 mt. 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 pushed above the 20-day moving average at $14.81 post report, with the overnight high at $15.18 next resistance. WHEAT: Wheat futures are 2 to 6 cents higher with KC leading with trade off the morning highs as momentum slows. The Plains remain dry short term, while the north will remain snow covered short term with midmonth progress possible. On the report, stocks were 936 mb versus 934 mb expected and 1.025 bb expected. The dollar remains toward the lower end of the range even with light weakness this morning, while Matif wheat is lightly firmer to help Chicago action. Little other change is noted on the world scene for now as India presses into harvest amidst warm and dry conditions 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 $8.35 with the fresh high scored this morning at $9.02 becoming resistance for now. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.