DTN Midday Grain Comments

Corn, Soybeans Lower Midday

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

General Comments

The U.S. stock market indices are lower at midday with DOW futures down 120 points. Interest rate products are weaker. The dollar index is 23 points higher. Energies are mixed, with crude down .55. Livestock trade is higher. Precious metals are mixed with gold down $3.70.


Corn trade is a penny lower in quiet midday trade with action still consolidating over $3.90 on nearby trade. The weekly ethanol report showed production 32,000 barrels a day lower, with stocks 4.9% higher. However, the strong gasoline demand has trade over $1.53 for ethanol futures. Double crop areas in Brazil look to build some moisture in the coming days. Planting has almost caught up to normal, with rising values potentially helping to add late acres while the pattern looks to bring some relief to Argentina. The daily wire was quiet Wednesday. On the May chart, support is at the 10-day, at $3.89, with resistance becoming the $3.95 high scored Tuesday.


Soybean trade is 3-to-6 cents lower at midday with trade turning back lower after testing resistance early on. Meal is $1-to-$2 lower, and oil is 15-to-25 points lower. 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, with logistic issues being watched as they are typical for this time of year. The daily wire has been quiet this week so far. Crush margins have narrowed a little with the meal slump but remain strong. On the May contract, support is the 50-day at $10.12 below that, with resistance the 20-day at $10.51, which we are testing this morning.


Wheat trade is 1-to-5 cents higher at midday with trade seeing choppy trade yet again. Plains weather continues to be stressful in the short-term, especially for the western belt. The longer-term forecast hints at some relief though, with some light showers possible Wednesday. The dollar index remains just below 90 on the index, with sideways trade continuing. Black Sea origin prices have drifted lower, solidifying their advantage in export markets, with better spring weather showing up for the area. On the May KC wheat support is at the 20-day at $5.12, 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