DTN Midday Grain Comments 04/12 10:47

DTN Midday Grain Comments 04/12 10:47 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 2 to 3 cents higher at midday Wednesday; soybean futures are 1 to 2 cents higher; wheat futures are 2 to 6 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents higher at midday Wednesday; soybean futures are 1 to 2 cents higher; wheat futures are 2 to 6 cents higher. The U.S. stock market is mixed with the S&P off 2 points. The U.S. Dollar Index is 60 points lower. Interest rate products are mixed. Energies are mixed with crude up 1.20 and natural gas off .08. Livestock trade is firmer with fresh highs in cattle. Precious metals are firmer with gold up $4.40. CORN: Corn futures are 2 to 3 cents higher at midday with firmer spread action continuing as trade works back toward the upper end of the recent range in quiet action. On the April WASDE report, trade saw old-crop carryout at 1.342 billion bushels (bb), unchanged from last month and just above expectations, with a smaller net decrease in South American and world stocks with Brazil mostly offsetting the Argentina drought. Ethanol margins remain rangebound short term, with the weekly report showing production off by 44,000 barrels, while stocks were down 8,000 barrels. 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 OK short term rains expected. Planting should continue to move quickly south of I-80. On the May chart we are holding above the 20-day moving average, which is now support at $6.44, and resistance is at the Upper Bollinger Band at $6.65. SOYBEANS: Soybean futures are 1 to 2 cents higher up front with spreads sharply firmer yet again Wednesday with oil limiting upside so far. Meal is .50 to $1.50 higher and oil is 80 to 90 points lower with world veg oil prices slumping. On the WASDE report, domestic carryout was unchanged at 210 million bushels (mb), just above expected with world stocks edging higher on Brazil gains offsetting Argentina losses. 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 as more producers switch to earlier varieties. 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 2 to 6 cents higher at midday with trade working to build further support at the upper end of the range for KC with concerns about Plains conditions adding support with the extended forecast potentially showing improvement. The dollar remains toward the lower end of the range even with weakness to start the day, while Matif wheat is flat at the lower end of the range limiting Chicago upside. On the WASDE report domestic carryout was 598 mb, up 30 mb from last month, with world stocks slightly lower. Little other change is noted on the world scene with India working into harvest, and most weather concerns confined to Spain and China for the moment. On the KC May Chart the 20-day moving average is support at $8.52 with the fresh high last week at $9.02 still resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.