DTN Midday Grain Comments 03/22 10:52

DTN Midday Grain Comments 03/22 10:52 Soybean Futures Higher at Midday; Corn Lower; Wheat Mixed Corn futures are 3 to 7 cents lower at midday Tuesday; soybean futures are 5 to 6 cents higher; wheat futures are 8 cents lower to 4 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow 225 points higher. The U.S. Dollar Index is flat. Interest rate products are weaker. Energies are mostly lower with crude down 1.80. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold down 18.00. CORN: Corn futures are 3 to 7 cents lower with weaker spread action coming into the day session with trade staying rangebound as early strength fades and December action stays slightly higher. Ethanol margins will remain tight with stocks near the 2020 highs. Driving demand did show improvement through the weekend, except for the West Coast. The daily wire has been quiet this week for corn, 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 with most changes a reaction to spread changes. 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 with new crop hitting new highs to start the week. On the May contract we have support at the 20-day moving average at $7.33 with resistance at the fresh high at $7.82 3/4. SOYBEANS: Soybean futures are 5 to 6 cents higher at midday with May action fading from $17.00 again, while new crop tests $15.00. Meal is $4.50 to $5.50 lower and oil is 90 to 100 points higher. Basis is back to trending sideways for now. The active daily export sales wire saw 240,000 metric tons (mt) of old crop sold to unknown yet again. Harvest will continue to push forward in South America with weather remaining mixed. The U.S. still holds some export competitiveness in the short term, although that is fading a bit. On the May soybean chart, we have resistance at the upper Bollinger Band at $17.13 3/4, which we tested overnight before fading from the 20-day moving average at $16.66 as support. WHEAT: Wheat futures are 8 cents lower to 4 cents higher at midday with weaker spread trade as trade focuses on condition reports in the Southern Plains, while widespread storms add moisture to the Plains overnight, helping to give us mixed action. There are also ongoing worries about availability from the Black Sea, Winter wheat limits remain at $.85 Tuesday. 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 the of Plains wheat looks to dry back out a bit after the current system works through with short-term moisture much better for many with the second week looking warmer to promote growth. Chicago and KC are back to a 5-cent premium for Chicago and a 23-cent premium versus Minneapolis has reemerged for Chicago. KC May chart support is the low from Wednesday night and last week at $10.40 with the 20-day moving average at $10.82 above that and resistance the recent high at $11.57, which we were just short of overnight before fading again. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.