DTN Midday Grain Comments

Futures Firmer at Midday

David M Fiala
By  David Fiala , DTN Contributing Analyst
(DTN photo by Nick Scalise)

General Comments

U.S. stock market indices are mixed at midday with the DOW futures up 10 points. Interest rate products are weaker. The dollar index is 23 points lower. Energies are weaker with crude down .90. Livestock trade is mixed. Precious metals are higher with gold up $5.50.


Corn futures are 3 to 5 cents higher at midday with trade putting in fresh highs with steady buying during the day session along with spillover support from wheat and soybeans. Ethanol margins remain positive with spring driving season rapidly approaching, with futures trying to push past the $1.51 area. Double-crop areas in Brazil look to build some moisture in the coming days; planting has about caught up to normal with rising values potentially helping to add late acres. Argentina should see some relief rains this week but coverage looks uneven giving us support here at midday. USDA announced 210,000 metric tons of optional origin sold to South Korea. On the May chart support is at the 10-day at $3.88 with resistance becoming the $3.95 high scored this morning.


Soybean futures are 8 to 10 cents higher at midday with trade trying to build on the firmer action to open the week after the initial test lower. Meal is $4 to $5 higher and oil is 40 to 50 points higher with the breakdown in meal slowing to boost crush margins. The weather pattern is bringing some rain to parts of Argentina with Brazil remaining mostly the same in the next week, while harvest continues to expand. On the May contract, support is the 50-day at 10.12 below that, with resistance the 20-day at 10.49 which we are testing at midday.


Wheat futures are 4 to 10 cents higher overnight with KC trade leading with the Plains wheat conditions remaining worrisome. Plains weather continues to be stressful with wind taxing the already short moisture conditions in the west with better conditions in the east, with weekly conditions mostly steady to weaker. The dollar index remains just below 90, with sideways trade continuing. Black Sea origin prices have drifted lower, solidifying their advantage in export markets, with better spring weather showing up. On the May KC wheat support is at the 20-day at 5.11, with the 10-day at $5.32 becoming resistance.

David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser.
He can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala


David Fiala