DTN Midday Grain Comments 04/25 10:58

DTN Midday Grain Comments 04/25 10:58 Wheat Futures Prices Flat to Higher; Corn, Soybeans Lower Corn futures are 12 to 13 cents lower at midday Monday; soybean futures are 18 to 23 cents lower; wheat futures are 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 60 points higher. Interest rate products are weaker. Energies are weaker with crude 1.65 lower and natural gas off .30. Livestock trade is mixed with feeder cattle and hogs leading. Precious metals are weaker with gold down 15.00. CORN: Corn futures are narrowly mixed with the front months leading in slightly stronger spread action as trade looks to consolidate the late-week pullback with spillover pressure from soybeans. Outside markets are negative with the dollar firmer and energies sharply lower on the potential of expanded COVID lockdowns in China. 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 toward pollination with some holes remaining in the forecast. U.S. weather looks cool and wet for the Central and Eastern Corn Belt which will keep planting slow in the short term. Today's weekly Crop Progress report is expected to show action solidly behind average. Weekly export inspections are expected to be in the 1.0 million metric ton (mmt) to 1.5 mmt range. On the July contract chart, we have support at the 20-day moving average at $7.62 with resistance at the new contract high of $8.14 printed last Tuesday. SOYBEANS: Soybean futures are 17 to 22 cents lower with broad selling as the threat of more COVID lockdowns in China offset the strong export sales seen last week and the restriction of palm oil exports by Indonesia. Meal is $4.00 to $5.00 lower and oil is 180 to 200 lower. South American harvest will continue to push forward with early planting slowly getting started in the U.S. with the weekly Crop Progress report likely to remain below average with a small number this week. 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. Weekly export inspections are expected to be in the 600,000 to 850,000 metric ton (mt) range. On the July soybean chart we have resistance at the Upper Bollinger band at $17.31. Support is at the $16.50 20-day moving average, which we have faded back toward. WHEAT: Wheat futures are 4 to 10 cents higher with the higher protein wheats leading as planting delays are seen for spring wheat. There is little change to Plains weather to support trade, despite the negative spillover from row crops. Spring wheat planting will likely remain limited in the short term with plenty of moisture in the next week. Weekly crop progress is likely to show planting well off average pace. The Plains may see some limited relief in some areas, but weekly crop conditions are expected to be little changed, and maturity is likely to remain a step behind normal. Little change is expected in the Black Sea region for now. KC wheat is back to a 16-cent discount to Minneapolis widening from the recent highs, and at a 74-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 $12.25 just above that, and the 20-day moving average well below that market at 11.10. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.