DTN Midday Grain Comments 03/18 10:54

DTN Midday Grain Comments 03/18 10:54 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 12 to 14 cents lower at midday Friday; soybean futures are 14 to 16 cents lower; wheat futures are 17 to 32 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow 100 points lower. The U.S. Dollar Index is 50 points higher. Interest rate products are higher. Energies are mixed with crude up .30. Livestock trade is mixed. Precious metals are mixed with gold down $7.00. CORN: Corn futures are 12 to 14 cents lower at midday with trade working just below the $7.20 area on the July, which we have traded the last 12 sessions with weaker spread action overall and little fresh news and a risk-off bias toward the weekend. Ethanol margins will remain tight with stocks remaining near the 2020 highs and spring driving demand not able to pull them down just yet. The daily wire was quiet again Friday, but recent sales have been bigger than the daily announcements have indicated. 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 depending on fertilizer availability. On the May contract, we have support at the 20-day moving average at $7.24 with resistance at the fresh high at $7.82 3/4. SOYBEANS: Soybean futures are 14 to 16 cents lower at midday with softer spread action as May fades back to support levels that we bounced off at midweek. Meal is $1.00 to $2.00 lower and oil is 290 to 310 points lower. Basis is back to trending sideways for now. The active daily export sales wire has been quiet so far this week. Harvest is underway in South America with weather remaining mixed and the U.S. still holding some export competitiveness in the short term, although that is fading a bit. On the May soybean chart, we have resistance at the fresh high at $17.59 with trade testing the 20-day moving average of $16.58 as support, which we are just below at midday. WHEAT: Wheat futures are 17 to 32 cents lower at midday with widespread moisture working through the Plains on Thursday and overnight with intra-month spread action still fading as the inverses get shallower up front with little fresh news on the Ukraine/Russia front. Winter wheat limits Friday are back to $.85 cents after expanded limits were in play Thursday. The dollar is backing off the highs a bit as well to boost U.S. export competitiveness on a dollar basis, although we remain elevated on the world scene. Most Plains wheat looks warmer and wetter over the next two weeks as storm activity picks up. Chicago and KC are back to 2-cent premium for KC, and a 7-cent premium versus Minneapolis remains. KC May chart support is the low from Wednesday night and last week at $10.40 with the 20-day at $10.55 just above that and resistance the week high at $11.57. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.