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DTN Midday Grain Comments 03/30 10:58
Corn, Wheat Futures Lower at Midday; Soybeans Mixed
Corn futures are 1 to 3 cents lower at midday Thursday; soybean futures are
narrowly mixed; wheat futures are flat to 8 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 1 to 3 cents lower at midday Thursday; soybean futures are
narrowly mixed; wheat futures are flat to 8 cents lower. The U.S. stock market
is working higher with the S&P up 20 points. The U.S. Dollar Index is 40 points
lower. Interest rate products are mixed. Energies are mixed with crude up 1.20
and natural gas down 7 cents. Livestock trade is firmer with cattle leading.
Precious metals have turned mixed with gold up 5.50.
CORN:
Corn futures are 1 to 3 cents lower at midday with spread action remaining
firm as early gains ease with pre-report position-squaring. Looking to Friday,
the average acre guess is 90.88 million acres of corn and stocks at 7.470
billion bushels (bb) versus 89.4 million acres and 7.758 bb in stocks last
year. Ethanol margins will need more help from unleaded to boost blender action
with firming corn values crimping margins again despite the uptick in demand
seasonally. The weekly ethanol report showed production slightly higher and
stocks off ahead of Easter travel. Basis has continued to generally drift back
higher. The daily export wire reported 178,000 metric tons (mt) of corn sold to
China, keeping the streak going. Weekly export sales of corn were at 1.04
million metric tons (mmt) old crop, and 21,800 mt of new crop with the trend
edging a little lower. The second crop in Brazil is heading toward the better
part of the growing season with trade watching forecasts into April for
development with some concerns on the horizon as we get into April. On the May
chart we are solidly above the 20-day moving average, which is now support at
$6.33, and resistance is at the Upper Bollinger Band at $6.56.
SOYBEANS:
Soybean futures are narrowly mixed at midday with weaker spread action
continuing as we work around the middle of the range with quiet product action
so far and further position-squaring expected. Meal is $3.00 to $4.00 higher
and oil is 90 to 100 points lower. For Friday's report, the trade is looking
for 88.242 million acres of soybeans and 1.742 bb of stocks versus 90.955
million acres and 1.931 bb last year. With South American new-crop beans
becoming available, export news has remained limited in recent days with weekly
sales improving slightly at 384,200 mt old crop, 3,900 mt new with meal at
377,900 old, 10,000 new and 2,000 of oil. Basis has generally remained solid in
the short term with the market still showing a substantial inverse, albeit just
off the highs. May chart support is now at the lower Bollinger Band at $14.23,
which we pushed back above Monday with further support at the $14.05 fresh low
scored Friday, while the 20-day moving average is just above the market at
$14.84, which we tested overnight and faded from.
WHEAT:
Wheat futures are flat to 8 cents lower with Plains weather still supportive
as we consolidate recent gains, along with sorting out the changes announced by
grain companies in the Black Sea with early gains fading again. KC is leading
after Chicago led Wednesday as we sit at 12-year highs on KC premium with the
firmer action this morning. On the report, trade is looking for all wheat at
48.852 million acres and stocks at 934 mb versus 47.351 million acres and 1.025
bb last year. Weather will continue to support KC action with the western
Plains to continue to struggle with moisture to the east, while early spring
wheat progress will be limited with cold and snow delaying the start of the
season. The dollar remains toward the lower end of the range, while Matif wheat
is weaker and weighing on Chicago action again. Weekly export sales were a bit
soft at 151,700 mt old, and 37,400 mt of new. Little other change is noted on
the world scene for now as India presses into harvest and other Northern
Hemisphere weather issues are limited with continental Europe generally in good
shape. On the KC May Chart the 20-day moving average is support at $8.25 with
the fresh high scored in Wednesday's trade at $8.96 becoming resistance for now.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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