DTN Midday Grain Comments 04/01 10:53

DTN Midday Grain Comments 04/01 10:53 Wheat Futures Higher at Midday Friday; Soybeans Lower; Corn Mixed Corn futures are mixed with nearby 2 to 4 cents lower at midday Friday; soybean futures are 11 to 13 cents lower; wheat futures are 3 to 15 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is flat with the DOW 10 points higher. The U.S. Dollar Index is 35 points higher. Interest rate products are weaker. Energies are firmer with crude up .40. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold down 20.00. CORN: Corn futures are mixed with front months 2 to 4 cents lower and new crop 8 to 10 cents higher as we continue to digest the acre surprise from Thursday with spread action. New crop corn acres are estimated at 89.49 million versus 92.00 million expected, while stocks did little to move the needle coming in at 7.85 billion bushels (bb) versus 7.877 expected. Ethanol margins will remain tight with the stocks overhang needing to be cleaned up into summer with some talk of bigger discretionary blending as part of the fuel price relief strategy. The daily wire had 136,000 metric tons (mt) of old crop sold to unknown. Early planting is going in the South with the Eastern Corn Belt looking wet to start April. On the May contract chart we have resistance at the 20-day moving average at $7.48, which we have faded from again overnight, and support at the lower Bollinger Band at $7.29, which we bounced off Monday. SOYBEANS: Soybean futures are 11 to 13 cents lower at midday with trade working to find support after washing out post-report and with further fresh lows scored Friday morning. Acres came in at 90.96 million versus 88.727 million expected and stocks a bit higher at 1.93 bb versus 1.902 bb expected. Meal is $9.00 to $10.00 lower at midday, and oil is 130 to 150 points higher. The export wire was quiet again Friday. Energy weakness could keep pressure on soy oil with meal values needing to support crush, but we saw a midmorning reversal on that Friday, while South America pushes deeper into harvest. New crop will likely continue to see pressure as the market will now bid for late corn acres. On the May soybean chart, we have support at the fresh low at $15.90 with the lower Bollinger band as resistance at $16.11. WHEAT: Wheat futures are 3 to 15 cents higher at midday with spring wheat working to consolidate gains and winter wheat working to rebound from the late spread unwinding after the report came in. Acres are 47.35 million versus 47.77 million expected; stocks were at 1.02 bb versus 1.045 bb expected, the lowest level for this report in 14 years. Spring wheat has led so far with KC back to a 32-cent premium versus Chicago and -52 cents versus Minneapolis, after a 40-cent swing post-report. Plains weather looks to be closer to seasonal norms in the short term after the recent rains for many, with the dollar sliding to boost world export competitiveness a bit. The KC May chart has resistance at the 20-day moving average at $10.98, with support the lower Bollinger Band we tested and bounced from Tuesday at $9.91. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.