DTN Midday Grain Comments 03/16 10:59

DTN Midday Grain Comments 03/16 10:59 Corn, Soybeans, Wheat Lower at Midday Corn futures are 24 to 26 cents lower at midday Wednesday; soybean futures are 5 to 6 cents lower; wheat futures are 60 to 82 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 24 to 26 cents lower at midday Wednesday; soybean futures are 5 to 6 cents lower; wheat futures are 60 to 82 cents lower. The U.S. stock market is firmer with the Dow 360 points higher. The U.S. Dollar Index is 50 points lower. Interest rate products are mixed. Energies are narrowly mixed. Livestock trade is mixed. Precious metals are mixed with gold down 16.00. CORN: Corn futures are 24 to 26 cents lower with softer spread action as we wash down to the lower end of the short-term range with July trading through $7.20 for the tenth day in a row before fading. 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 the weekly report showing production 2,000 barrels per day (bpd) lower, along with another big stocks build of 674,000 barrels. The daily wire has seen limited reports in recent days with nothing announced again today. Basis should be steadier in the 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 $7.15 with resistance at the fresh high at $7.82 3/4. SOYBEANS: Soybean futures are 5 to 6 cents lower at midday as early gains evaporate amid weakness in the corn and wheat trade. Meal is $4.00 to $5.00 lower and oil is 25 to 35 points higher. Basis is back to trending sideways for now. The active daily export sales wire has been quiet so far this week after the recent run of sales the prior two weeks. Harvest is underway in South America with weather remaining mixed and the U.S. is still holding some export competitiveness short term, although that is fading quickly. The Monthly Crush report showed 186.438 million bushels (mb) crushed, up 2% from last year, and 4% from last month. On the May soybean chart, we have resistance at the fresh high at $17.59 with trade testing the 20-day moving average $16.52 support at midday. WHEAT: Wheat futures are 60 to 82 cents lower with trade continuing volatile action after the sharp gains Tuesday as trade washes back towards the recent lows with ideas of progress between Russia and Ukraine, and a wetter forecast in the U.S. 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 wetter over the next two weeks as storm activity picks up. Chicago and KC are back to a 9-cent premium for KC, and a 19-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.