DTN Midday Grain Comments 03/29 10:51

DTN Midday Grain Comments 03/29 10:51 Grain Futures Sinking in Red Midday Tuesday Corn trade is 27 to 28 cents lower, beans are 25 to 28 cents lower and wheat is 22 to 39 cents lower at midday. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow 250 points higher. The dollar index is 0.80 lower. Interest rate products are firmer. Energies are sharply lower with crude down $3.20. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold down $31.00. CORN: Corn trade is 27 to 28 cents lower at midday with broad selling winding up again with Russia announcing some de-escalation, along with progress in peace talks as the trade tests limit lower. December corn is migrating back toward the $6.50 area with the broad selling more focused on old crop for now and weather concerns confined to the Western Corn Belt as we head to planting. Ethanol margins will remain tight with the stocks overhang needing to be cleaned up into summer. On the May contract chart, we have resistance at the 20-day moving average at $7.48, and support the lower Bollinger Band at $7.23, which we are just below at midday. SOYBEANS: Soybean trade is 25 to 28 cents lower at midday with trade sustaining losses from Monday, along with spillover pressure from corn and wheat. Meal is $12.50 to $13.50 lower and oil is 0.60 cent to 0.70 cent lower. The export wire was quiet Tuesday. Energy weakness could trigger more selling if sustained with South America pushing deeper into harvest to improve availability. New crop has struggled to hold any advantage to corn, which could change post report. On the May soybean chart, we have resistance at the 20-day at 16.64 1/4, which we fell below Monday, with the lower Bollinger Band at %16.41 1/4 as support, which we are testing at midday. WHEAT: Wheat trade is 22 to 39 cents lower at midday with action falling sharply as Russia deescalates a bit, and apparent progress is made in peace talks before starting to grind back during the day session, with trade nearly 45 cents off the lows. Spring wheat is leading so far with KC back to a 20-cent premium versus Chicago and -17 cents versus Minneapolis. Weather in the Plains looks to be closer to seasonal norms short term after the recent rains for many, which can limit short-term upside along with the dollar staying near the high. Limited condition reports showed improvement for Kansas, with Texas and Oklahoma declining slightly. The KC May chart has resistance at the 20-day at $11.13, with support the lower Bollinger Band we are tested and bounced from at $9.98. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.