DTN Midday Grain Comments 03/15 10:47

DTN Midday Grain Comments 03/15 10:47 Corn, Soybean Futures Lower; Wheat Higher Corn futures are 1 to 3 cents lower at midday Tuesday; soybean futures are 18 to 20 cents lower; wheat futures are 5 to 27 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow 340 points higher. The U.S. Dollar Index is 10 points lower. Interest rate products are mostly higher. Energies are weaker again with crude down 8.30. Livestock trade is mostly lower. Precious metals are weaker with gold down 42.00. CORN: Corn futures are 1 to 3 cents lower at midday with flat to firmer spread action as pressure from falling energy prices and China demand concerns continue to limit the upside. Ethanol margins will remain tight as we see how driving demand holds up. Turnaround on plant maintenance is slowing grind in the short term with short-term driving demand likely to hold well as energy prices retreat and weather improves. The daily wire has seen limited reports in recent days with nothing announced Tuesday. Basis should be steadier near term with recently moved bushels snaking through the system now. 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 $7.08 with resistance at the fresh high at $7.82 3/4. SOYBEANS: Soybean futures are 18 to 20 cents lower at midday with concerns about demand from China, cheaper energy prices and South American harvest pressure all limiting buying enthusiasm. Meal is flat to $1.00 lower and oil is 100 to 110 points lower. Basis is back to trending sideways for now. The active daily export sales wire is expected to continue in the short term especially for new crop with a quiet start to the week. Harvest is underway in South America with weather remaining mixed. The U.S. is still holding some export competitiveness in the short term, although that is fading quickly. The Monthly Crush report is expected to continue to show elevated run rates. On the May soybean chart, we have resistance at the fresh high at $17.59 with trade testing the 20-day moving average at $16.44 as support before bouncing a bit. WHEAT: Wheat futures are 5 to 27 cents higher at midday with KC action the strongest as volatile trade continues with early row crop pressure fading and trade in show-me mode on peace talks. The dollar is backing off the highs a bit as well to boost U.S. export competitiveness on a dollar basis. Most the of Plains wheat looks warmer and drier in the short term; only eastern Kansas potentially seeing more favorable action from U.S. 81 east. Chicago and KC are back to a 7-cent premium for KC, and a 40-cent premium versus Minneapolis remains. 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.