DTN Midday Grain Comments

General Comments

The U.S. stock market indices are lower with the Dow futures 30 points lower. The interest rate products are mostly lower. The dollar index is narrowly mixed. Energies are mixed with crude up $0.20. Livestock trade is mixed. Precious metals are mixed with gold up 3.20.

CORN

Corn trade is 4 to 5 cents lower at midday with selling picking up during the day session with the extended forecast looking drier. The weather forecast is still expected to bring heavy rains into the middle of the belt this weekend before more seasonable weather returns. Ethanol margins are stable overnight with futures down slightly along with the corn. Corn basis has remained steady with a firm tone this week; with significant deliveries overnight. The July chart support is the recent low at $3.61 with resistance clustered at $3.69.

SOYBEANS

Soybean trade is 3 to 4 cents lower overnight with trade continuing to grind around the recent range with spillover pressure from corn. Meal is flat to $1 lower and oil is 25 to 35 points lower. Wet weather moving forward should be viewed as negative for beans since it could add acreage coming forward with corn gaining this week. Basis has remained fairly steady in the near term with trade rolling to the July as the May contract goes into delivery. Strong movement is expected to continue from South America in the near term. July soybean chart support is recent low at $9.49, with resistance the 20-day at $9.57.

WHEAT

Wheat trade is mixed with KC and Minneapolis leading with trade trying to close out strong gains for the week with the cold and weather weather concerns adding premium ahead of the beginning of the Kansas crop tour. Heavy rains could raise disease concerns further in much of the winter wheat belt with a cold snap through the weekend potentially damaging heading wheat, although temps mostly stayed above freezing last night. The dollar is just below the 99 level on the index. On the July KC contract support is at the 20-day at $4.31 with resistance the 50-day at $4.51 with the positive momentum heading into the weekend.

David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala

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