DTN Midday Grain Comments 04/22 10:55

DTN Midday Grain Comments 04/22 10:55 Corn and Beans Down Double Digits Midday Friday Corn trade is 12 to 13 cents lower; beans are 18 to 23 cents lower and wheat is flat to 7 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow 545 points lower. The U.S. Dollar Index is 0.60 higher. Interest rate products are weaker. Energies are weaker with crude with crude $1.65 lower and natural gas off $0.30. Livestock trade is mixed with feeder and hogs leading. Precious metals are weaker with gold down $15.00. CORN: Corn trade is 12 to 13 cents lower midday Friday with strength fading as longs take profits toward the weekend after shaking off the big set of export sales on the daily wire. USDA reported 1.347 million metric tons sold to China and 281,000 to Mexico split between old and new crop. Spread trade remains flat, as early week action likely priced in the sales. Ethanol margins should remain stable as stocks decline slowly with corn values and other inputs trying to take a breather. The second crop in Brazil will continue to head towards pollination with more holes in the forecast and U.S. weather cool and wet for the central and Eastern Corn Belt to keep planting slow short term, along with better-than-expected Black Sea progress. On the July contract chart, we have support at the 20-day moving average at $7.60 with resistance at the new contract high of $8.14 printed Tuesday. SOYBEANS: Soybean trade is 18 to 23 cents lower at midday with early buying fading as Indonesia bans cooking oil exports and other news remains limited with meal losses offsetting oil gains so far. Meal is $11.00 to $12.00 lower and oil is 1.50 cents to 1.70 cents higher. South American harvest will continue to push forward with early planting slowly getting started in the U.S. New crop November has gained a little versus corn in recent days but remains at disadvantage and slow corn planting is likely to help defend soybean acres. The daily wire had 144,000 metric tons sold to Mexico Friday. On the July soybean chart, we have resistance at the upper Bollinger band at $17.41. Support is at the $16.50 20-day, which we continue to hold solidly above. WHEAT: Wheat trade is flat to 7 cents higher at midday with the higher protein wheats leading to start as planting delays for spring wheat and little change to weather in the Plains to support trade despite the spillover from row crops. Spring wheat planting will likely remain limited short term with plenty of moisture in the next week. Little change is expected in the Black Sea region for now. KC wheat is back to a 10-cent discount to Minneapolis widening from recent from the recent highs and at a 73-cent premium to Chicago. The KC July chart has resistance at the fresh high at $12.02 1/4 scored Tuesday with the upper Bollinger Band at $12.16 just above that, and the 20-day well below that market at $11.08. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.