DTN Midday Grain Comments 04/11 10:45

DTN Midday Grain Comments 04/11 10:45 Soybean Futures Higher Tuesday; Corn, Wheat Flat to Lower Corn futures are flat to 1 cent lower at midday Tuesday; soybean futures are 6 to 7 cents higher; wheat futures are flat to 5 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 1 cent lower at midday Tuesday; soybean futures are 6 to 7 cents higher; wheat futures are flat to 5 cents lower. The U.S. stock market is mixed with the S&P up 2 points. The U.S. Dollar Index is 40 points lower. Interest rate products are weaker. Energies are mixed with crude up 1.30 and natural gas unchanged. Livestock trade is mixed. Precious metals are firmer with gold up $13.00. CORN: Corn futures are flat to a penny lower in quiet midday action with light two-sided action ahead of the report. On the April WASDE report at 11 a.m. CDT, 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 corn and unleaded staying range bound. Basis has turned more mixed short term with more buyers rolled to the July as the inverse remains strong. The second crop in Brazil is heading toward the bigger part of the growing season with light storm systems passing through over the weekend, with another front expected at the end of the week. Weekly crop progress showed 3% planted versus 2% on average with good progress likely south of I-80 this week and weekend showers likely for many. On the May chart we are holding above the 20-day moving average which is now support at $6.43, and resistance is at the Upper Bollinger Band at $6.65. SOYBEANS: Soybean futures are 6 to 7 cents higher with firmer spread action as we consolidate further in the middle of the range pre-report with trade fading off the early highs as products gain moderately. Meal is $3.50 to $4.50 higher and oil is 30 to 40 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. Basis has generally remained solid in the short term with the market still holding a substantial inverse. New crop will have to work harder to hold acres if open weather accelerates corn planting into midmonth, while early bean planting should pick up this week. Argentina is pursuing another program to encourage producer selling with dollars over the next few months. May chart support is the 20-day moving average at $14.80, which we continue to hold, with the recent high at $15.28 as next resistance. WHEAT: Wheat futures are flat to 5 cents lower with two-sided action toward the report with conditions remaining supportive but other bullish news lacking for now. The dollar remains toward the lower end of the range even with weakeness to start the day, 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 crop progress showed poor to very poor 37%, up 1 percentage point on the week, and good to excellent 27%, down 1 percentage point on the week with 7% headed versus 4% on average, and spring wheat planting at 1% versus 4% on average. On the KC May Chart the 20-day moving average is support at $8.50 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.