DTN Midday Grain Comments 04/10 10:52

DTN Midday Grain Comments 04/10 10:52 Corn, Wheat Futures Higher at Midday; Soybeans Mixed Corn futures are 5 to 6 cents higher at midday Monday; soybean futures are narrowly mixed; wheat futures are 4 to 11 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 6 cents higher at midday Monday; soybean futures are narrowly mixed; wheat futures are 4 to 11 cents higher. The U.S. stock market is weaker with the S&P off 20 points. The U.S. Dollar Index is 60 points higher. Interest rate products are weaker. Energies are flat with crude off .30 and natural gas up .15 cents. Livestock trade is firmer. Precious metals are lower with gold off $23.00. CORN: Corn futures are 5 to 6 cents higher with firmer spread action as early two-sided action turns positive at midday. On the April WASDE report Tuesday, trade is looking for old-crop carryout at 1.316 billion bushels (bb), and slightly lower world stocks and South American production. Ethanol margins remain rangebound short term, with cheaper corn and flat unleaded action for the blenders. Basis has turned more mixed short term with more buyers rolled to the July. Weekly export inspections were a little soft at 805,167 metric tons (mt). The second crop in Brazil is heading toward the bigger part of the growing season with light storm systems passing through. Weekly crop progress should show planting just ahead of normal pace with good progress likely south of I-80 this week. On the May chart we are holding above the 20-day moving average, which is now support at $6.40, and resistance is at the Upper Bollinger Band at $6.66. SOYBEANS: Soybean futures are narrowly mixed with trade working to condsolidate just above nearby support levels with flat spread action and mixed product direction. Meal is $1.00 to $2.00 lower and oil is 30 to 50 points higher. On the WASDE report, trade is looking for carryout at 200 million bushels (mb), with South American production slightly lower on net, along with world stocks. Weekly export inspections were disappointing at 669,566 mt. Basis has generally remained solid in the short term with the market still showing a substantial inverse but fading further from the highs. New crop will have to work harder to hold acres if open weather accelerates corn planting into midmonth. Argentina is pursuing another program to encourage producer selling with dollars. Weekly crop progress is likely to show soybean planting just ahead of average, if reported. May chart support is the 20-day moving average at $14.80, which we moved back above last week, with the Monday high at $15.28 as next resistance. WHEAT: Wheat futures are 4 to 11 cents higher at midday with trade opening sharply higher before turning two-sided early on the day session and then firming to midday with KC leading. The dollar remains toward the lower end of the range, even with morning strength, while Matif wheat continues to leak lower at the bottom of the range, which will continue to limit upside for Chicago. On the WASDE report, trade is looking for 576 mb on carryout, and world stocks unchanged to slightly lower. 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. Weekly export inspections were improved a bit at 335,444 mt. Weekly crop progress is expected to show winter wheat conditions at the bottom of the all-time range for this time of year, and spring wheat planting pace lagging average by a bit. On the KC May Chart the 20-day moving average is support at $8.46 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.