DTN Midday Grain Comments 04/05 10:58

DTN Midday Grain Comments 04/05 10:58 Corn Futures Higher at Midday; Soybeans, Wheat Lower Corn futures are 2 to 3 cents higher at midday Wednesday; soybean futures are 1 to 4 cents lower; wheat futures are 9 to 14 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents higher at midday Wednesday; soybean futures are 1 to 4 cents lower; wheat futures are 9 to 14 cents lower. The U.S. stock market is mixed with the S&P off 15 points. The U.S. Dollar Index is 19 points higher. Interest rate products are firmer. Energies are mixed with crude off .40 and natural gas up .05 cents. Livestock trade is mixed with cattle leading. Precious metals are mostly lower with gold off $2.00. CORN: Corn futures are 2 to 3 cents higher at midday with trade firming back from early weakness with stronger spread action yet again and little fresh news otherwise. Ethanol margins remain rangebound short term, with the weekly report showing flat production, and stocks off 351,000 barrels ahead of Easter travel. Basis has turned more mixed short term. The daily export wire saw unknown return for 125,000 metric tons (mt) of old crop corn. The second crop in Brazil is heading toward the better part of the growing season with trade watching forecasts into April with some rains late this week before heading drier again. On the May chart we are solidly above the 20-day moving average, which is now support at $6.37, and resistance is at the Upper Bollinger Band at $6.64, which we tested and faded from Monday. SOYBEANS: Soybean futures are 1 to 4 cents lower at midday with firmer spread action as trade turns more two-sided after early selling and continued product weakness. Meal is $6.00 to $7.00 lower and oil is 20 to 30 points lower. The daily export wire saw life with 276,000 mt of old crop soybeans sold to unknown. Basis has generally remained solid in the short term with the market still showing a substantial inverse, albeit just off the highs. New crop will have to work harder to hold acres if open weather accelerates corn planting into midmonth. May chart support is the 20-day moving average at $14.81, which we moved back above last week, with the Monday high at $15.28 as next resistance. WHEAT: Wheat futures are 9 to 14 cents lower with Chicago action leading as KC and Minneapolis relax as forecasts show potential improvement in the extended forecast and we see profit-taking versus intra-contract spreads toward midday with trade holding just above the day lows. The dollar remains toward the lower end of the range, even with light morning strength, while Matif wheat continues to leak lower at the bottom of the range. 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 $8.37 with the fresh high scored Monday 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.