DTN Midday Grain Comments 03/11 10:54

DTN Midday Grain Comments 03/11 10:54 Corn, Soybean Lower; Wheat Higher at Midday Monday Corn trade is 2-3 cents lower. Beans are 3-5 cents lower and wheat trade is 5-8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is softer at midday with the S&P 25 points lower. The dollar index is 15 points higher. Interest rate products are mostly lower. Energies have crude $.30 lower and natural gas off $.04. Livestock trade is mostly lower. Precious metals are firmer with gold up $4.50. CORN: Corn trade is 2-3 cents lower at midday with trade fading back from the highs to start the week but able to firm back from bigger early selling along with holding nearby support. Ethanol margins will be pressed by the gains in corn with better driving demand needed to sustain improvement with unleaded demand still a bit soft. On the WASDE report, we saw carryout unchanged at 2.172 billion bushels with world stocks down slightly from 322.1 million metric tons (mmt)to 319.6, and Argentina and Brazil production a net 1.0 mmt higher. The daily wire was quiet to start the week, with weekly export inspections remaining solid at 1.122 mmt. Basis should remain sideways short term with early fieldwork limiting movement a little. Early second-crop corn should continue to progress in Brazil with planting pace still solidly ahead of average. On the May chart, the 20-day at $4.29 is nearby support which we held above Friday with the upper Bollinger Band at $4.45 the next round up. SOYBEANS: Soybean trade is 3-5 cents lower at midday with trade seeing two-sided with meal action limiting upside action to start the week. Meal is $4 to $5 lower and oil is 50 to 60 points higher. On the WASDE report, carryout was unchanged domestically at 315 million bushels, with world stocks down 1.7 mmt to 114.3 million with Argentina production reduced by a net 1 mmt. South American weather should allow for Brazil harvest to continue to progress well past the halfway point with little change to Argentina expectations. The daily wire was quiet to close the week with weekly export inspections softening a touch at 706,334 metric tons (mt). Basis should remain flat short term domestically. The May soybeans have support at the 20-day moving average at $11.62 which we surged through late in the session Friday. The $11.97 upper Bollinger band is the next level of resistance above the fresh high at $11.89 scored overnight. WHEAT: Wheat trade is 5-8 cents higher at midday with trade bouncing solidly back from early weakness with action consolidating above nearby support for the nearby KC contract. The USDA confirmed another 264,000 mt of soft red wheat canceled by China today, but the market was expecting it. On the report, domestic carryout was 18 million bushels to 673, and world stocks were down from 259.4 million metric to 258.8 million. The Plains will see warm temps short term before a cooler stretch expected later in the month with short-term moisture potential. The dollar remains at the lower end of the range while MATIF wheat continues to hold above the recent lows with some strength today. Weekly export inspections improved a bit at 402,874 metric tons. On the KC May chart, support is at the 20-day moving average at $5.77 which we are just above overnight. Resistance is the upper Bollinger Band at $5.98 for the next round-up. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2024 DTN, LLC. All rights reserved.