DTN Midday Grain Comments 03/28 10:52

DTN Midday Grain Comments 03/28 10:52 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 9 to 10 cents lower at midday Monday; soybean futures are 32 to 35 cents lower; wheat futures are 37 to 52 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the DOW 180 points lower. The U.S. Dollar Index is 40 points higher. Interest rate products are firmer. Energies are sharply lower with crude down 8.00. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold down 17.00. CORN: Corn futures are 9 to 10 cents lower at midday in broad risk-off trade to start the week with weaker spread action; China announcing lockdowns in Shanghai is the biggest driver so far. December corn is settling into a $6.60 to $6.70 range with action working to hold acres as we head towards the planted acres report next week, along with early planting in the south with continued moisture from the Missouri River east in the short term. Ethanol margins will remain tight with the stocks overhang needing to be cleaned up into summer. Weekly export inspections were 1.607 million metric tons (mmt) and 127,920 metric tons (mt) were sold to unknown on the daily wire. On the May contract chart we have support at the 20-day moving average at $7.47, which we are below at midday with resistance at the March 4 contract high of $7.82 3/4. SOYBEANS: Soybean futures are 32 to 35 cents lower at midday with weaker spread action as old crop pulls back from the $17.00 area and new crop from $15.00 amid the risk-off action Monday morning. Meal is $6.50 to $7.50 lower and oil is 215 to 225 points lower. The daily export wire showed 132,000 mt sold to China for old crop. Energy weakness could trigger more selling if sustained with South America pushing deeper into harvest to improve availability. Weekly export inspection continued seasonally at 628,819 mt. On the May soybean chart, we have resistance at Friday's high of $17.36, then the contract high at $17.59. Chart support is at the 20-day moving average at $16.79, which we are below at midday. WHEAT: Wheat futures are 37 to 52 cents lower at midday with risk-off action and low volume with little fresh news on Ukraine/Russia front; China is selling out of state reserves to push trade back into support levels. Spring wheat is leading so far with KC back to an 11-cent premium versus Chicago and -6 cents versus Minneapolis. Plains weather looks to be closer to seasonal norms in the short term after the recent rains for many, which can limit short-term upside along with the dollar staying near the high with limited condition reports expected out Monday afternoon. Weekly export inspections were range bound at 341,191 mt. The KC May chart has resistance at the 20-day moving average at $11.13, with support the recent low at $10.35. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.