DTN Midday Grain Comments 04/18 10:59

DTN Midday Grain Comments 04/18 10:59 Corn, Soybean Futures Flat to Higher at Midday; Wheat Lower Corn futures are flat to 1 cent higher at midday Tuesday; soybean futures are flat to 2 cents higher; wheat futures are 3 to 11 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 1 cent higher at midday Tuesday; soybean futures are flat to 2 cents higher; wheat futures are 3 to 11 cents lower. The U.S. stock market is weaker with the S&P off 3 points. The U.S. Dollar Index is 30 points lower. Interest rate products are firmer. Energies are firmer with crude up .20 and natural gas up .05. Livestock trade is mostly lower. Precious metals are firmer with gold up $15.80. CORN: Corn futures are flat to 1 cent higher at midday with trade pressing into the recent highs overnight before turning two-sided during the day session. Ethanol margins remain rangebound short term, with corn values crimping things a little as unleaded stays just off the recent highs from the blending side. Basis has turned more mixed short term with more buyers rolled to 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 slow down this week with cooler and wetter weather for many, especially in the north. Weekly crop progress showed corn at 8% versus 5% on average, solidly below expectations of 10%+. On the May chart we are holding above the 20-day moving average, which is now support at $6.47. Resistance is at the fresh high at $6.82 1/2 scored overnight. SOYBEANS: Soybean futures are flat to 2 cents higher at midday with trade pressing back toward the recent highs overnight before fading during the day session with softer spread action with oil leading a mixed product complex. Meal is $4.50 to $5.50 lower and oil is 100 to 110 points higher. Brazil beans remain much cheaper than U.S. 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 this spring with a slowdown in early progress expected through the northern and central areas of the belt this week. Weekly crop progress showed 4% planted versus 1% on average. May chart support is the 20-day moving average at $14.82, which we continue to hold, with the fresh high at $15.31 as next resistance, which we have faded from at midday. WHEAT: Wheat futures are 3 to 11 cents lower with Chicago and Minneapolis leading as spread action remains active with two-sided action during the day session as will follow the lead of the row crops. The dollar is just off the low end of the range while Matif wheat has worked a little higher again this morning to add broader support to Chicago action. On the world front, India harvest will move forward, and potential export changes for the Black Sea area will be watched with increased doubt about the grain corridor survival. The Plains may see some relief toward the end of the forecast with some cold weather concerns again, while the north will remain slow on planting with winter wheat conditions down 2% to 39% poor to very poor, and 27% good to excellent with 10% headed versus 7% on average, while spring wheat is 3% planted versus 7% on average. On the KC May chart the 20-day moving average is support again at $8.62, which we bounced back above Friday with the Upper Bollinger Band at $9.05 above the market. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.