DTN Midday Grain Comments 03/23 11:31

DTN Midday Grain Comments 03/23 11:31 Corn, Soybean Futures Higher at Midday; Wheat Steady-Lower Corn futures are 5 to 6 higher at midday Wednesday; soybean futures are 13 to 19 cents higher; wheat futures are flat to 8 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is lower with the DOW futures 300 points lower. The U.S. Dollar Index is 16 higher. Interest rate products are higher. Energies are mostly higher with crude up 5.25. Livestock trade is mixed with cattle lower and hogs firm. Precious metals are higher with gold up 7.50. CORN: Corn futures are 5 to 6 cents higher at midday with a flat tone. Midday trade is a dime off the daily high. On the July chart the daily high was within 3 cents of the contract high and the December high, a new contract high, up at $6.80 1/4. The action is showing corn needs to compete for 2022 acres. Ethanol margins will remain tight with the firmer corn trade. The weekly report had the ethanol inventories at 26.15 million barrels, up from 26.95 million reported last week. This was within the range of expectations but did seem to help stall corn strength. On the May chart we have support at the 20-day moving average at $7.37 with resistance at the March 4 contract high at $7.82 3/4. SOYBEANS: Soybean futures are 13 to 19 cents higher at midday with May futures off our daily high by 20 cents. Meal is up 7 and bean oil is up 85 points. The active daily export sales wire saw 240,000 metric tons (mt) of old crop sold to unknown Tuesday with new-crop announcements more limited in recent days. The chart momentum, strong energy trade and concern for needed 2022 acres continues to offer beans support. Harvest will continue to push forward in South America with weather remaining mixed, but with the US competitive the market is staying striking distance from our contract highs. On the May soybean chart, we have resistance at Wednesday's high of $17.36, then the contract high at $17.59. Chart support is at the 20-day moving average at $16.68. WHEAT: Wheat futures are flat to 8 cents lower at midday in active trade. Most contracts have seen daily ranges of around 35 cents. The spread trade remains very active with new crop 2023 KC gaining more than 20 cents on Chicago, but nearby July new crop is only 4 cents higher on Chicago for the day. Welcome moisture in the HRW is limiting upside as well as dollar strength. Spillover support from beans and corn is limiting downside in wheat at midday. The KC May chart has support at the 20-day moving average at $10.90 and resistance the upper Bollinger Band at $12.61 then the recent March 7 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.