DTN Midday Grain Comments 03/11 10:49

DTN Midday Grain Comments 03/11 10:49 Wheat Futures are Higher at Midday; Soybeans Lower; Corn Mixed Corn futures are narrowly mixed at midday Friday; soybean futures are 9 to 10 cents lower; wheat futures are 8 to 24 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow 150 points higher. The U.S. Dollar Index is 30 points higher. Interest rate products are mixed. Energies are firmer with crude up 2.90. Livestock trade is firmer. Precious metals are weaker with gold down 14.00. CORN: Corn futures are narrowly mixed at midday with choppy action and firmer spread trade continuing as we consolidate at the upper end of the range. Ethanol margins will remain tight as we see how driving demand holds up, along with turnaround on plant maintenance slowing grind in the short term. So far, short-term driving demand is holding up even with the early week surge in unleaded values. The daily export wire showed a corn sale of 128,900 metric tons (mt) to unknown. Basis will continue to trend lower until trade starts to calm down with more steady action the last few days with frieght still backlogged on existing sales. Trade will continue watching South American weather as we head into second-crop development. Corn looks to be defending acres in the U.S. ahead of planting. On the May contract we have support at the 20-day moving average at $6.99 with resistance at the fresh high at $7.82 3/4 hit Friday. SOYBEANS: Soybean futures are 9 to 10 cents lower with trade fading back from the $17.00 area upfront yet again with spread action turning more mixed. Meal is $7.00 to $8.00 lower and oil is 85 to 95 lower. Basis is back to trending sideways for now. The active daily export sales wire resumed Friday with 264,000 mt sold to China. Harvest is underway in South America with weather remaining mixed. The U.S. is still holding some export competitiveness in the short term as estimates for production continue to sit around 125 million metric tons (mmt) in Brazil on the latest round of private guesses. On the May soybean chart, we have resistance at the fresh high at $17.59 with trade well above the 20-day moving average at $16.37 support. WHEAT: Wheat futures are 8 to 24 cents higher with the overnight rally evaporating again before rebounding. Chicago is the downside leader as spread action continues to fade between contract and months with some positive signals towards Russia/Ukraine talks along with grain starting to move a bit out of the Black Sea region again. Limits are 85 cents Friday for winter wheat. The dollar is backing off the highs a bit as well to boost U.S. export competitiveness as most buyers have headed to the sidelines for now. Some moisture worked across parts of the Plains with colder weather near term and snow possible Friday for Kansas and Nebraska growing areas with the second week forecast potentially wetter again for some. Chicago is expected to remain the highest priced nearby contract with a 6-cent premium to KC contracting sharply and .30 cents versus Minneapolis action. KC May chart support is the low from Thursday at $10.40 with resistance the $12.99 1/2 fresh high. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.