DTN Midday Grain Comments 04/05 10:49

DTN Midday Grain Comments 04/05 10:49 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 7 to 9 cents higher at midday Tuesday; soybean futures are 15 to 25 cents higher; wheat futures are 25 to 41 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the DOW 30 lower. The U.S. Dollar Index is 25 points higher. Interest rate products are weaker. Energies are mixed with crude .30 higher. Livestock trade is weaker with cattle the downside leader. Precious metals are mostly higher with gold up 2.00. CORN: Corn futures are 7 to 9 cents higher at midday with flat spread trade as it follows the lead of wheat and soybeans, while December looks to consolidate above $7.00 today. Ethanol margins will remain tight with the stocks overhang needing to be cleaned up into summer with better blending and exports. The daily wire was quiet Tuesday morning after the China sale Monday. Early planting is going in the south with the Eastern Corn Belt looking wet to start April with 2% planted, same as average on the first planting progress report. On the May contract chart, we have support at the 20-day moving average at $7.48, which we closed above Monday, and resistance the Upper Bollinger Band at $7.68, which we have faded from Tuesday morning. SOYBEANS: Soybean futures are 15 to 25 cents higher at midday with firmer spread action as the front months move back above $16.00 and new crop is back past $14.50 as it works to hold onto acres into planting with gains limited versus corn Tuesday morning. Meal is $9.50 to $10.50 higher and oil is flat to 10 points higher. The export wire remained quiet. South America will continue to push forward, harvest-wise, with early planting still a bit off in the U.S. Crush margins will need one of the products to step forward and support margins with both well off the highs and energies limiting oil upside for now. On the May soybean chart, we have support at the fresh low at $15.76 3/4 with the 20-day moving average as resistance at $16.63 if we can extend the rebound. WHEAT: Wheat futures are 25 to 41 cents higher at midday with winter wheats gapping higher after the conditions report came in lower than expected with spring wheat gains slower in developing. KC is back to a 33-cent premium versus Chicago and -30 cents versus Minneapolis, narrowing 18 cents Tuesday morning. Plains weather looks to be open this week with rains for the eastern growing areas possible with the second week potentially looking better. The first conditions and progress report showed 30% good to excellent and 36% poor to very poor, 23% lower than a year ago, with 4% headed versus 3% on average, with spring wheat 3% planted versus 2% on average. The KC May chart has resistance at the 20-day moving average at $10.79, which we are just below at midday, with support the lower Bollinger Band at $10.08. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.