News & Resources

DTN Midday Grain Comments 04/12 10:48

12 Apr 2021
DTN Midday Grain Comments 04/12 10:48 Grains Moving Lower Midday Monday Corn is 7 to 8 cents lower, soybeans is 19 to 21 cents lower and wheat is 3 to 10 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 65 points. The U.S. Dollar Index is 0.07 lower. Interest rate products are mostly lower. Energies are firmer with crude up $0.65. Livestock trade is mostly higher. Precious metals are weaker with gold off $10.00. CORN: Corn trade is 7 to 8 cents lower with new crop 2 to 3 cents lower with weaker spread action and little fresh news for corn as spillover from soybeans weighs on the market. Ethanol margins should remain range-bound with driving demand likely to remain near normal levels short term and corn values limiting upside. Corn basis should remain sideways short term with ethanol and export movement needing to maintain the recent improvements in pace. Double-crop progress in Brazil looks to have mixed weather for most, with early growth seeming to be OK for now. Weekly export inspections were a bit soft at 1.596 million metric tons, and will likely be revised higher, and weekly crop progress should show planting in line with the five-year average while cooler weather will slow progress this week. On the May contract, chart resistance is the contract high at $5.95, with the Upper Bollinger band at $5.76 3/4 now just above the market, then the 20-day at $5.55 as support. SOYBEANS: Soybeans are 19 to 21 cents lower at midday with pressure from harvest progress in South America along with their relaxation of biodiesel blending rates, and little fresh bullish news otherwise, even as China stepped in for 132,000 metric tons of new crop and Bangladesh securing 110,000 metric tons split between old and new crop. Meal is $1.00 to $2.00 lower and oil is 0.80 cent to 0.90 cent lower. South America is expected to continue harvest progress in Brazil with little overall weather change short term and Argentina looking stable short term. Weekly export inspections continue to trend lower seasonally at 327,799 metric tons. The May soybean chart has resistance the 20-day at $14.12, with support the lower Bollinger band at $13.81, which we are testing at midday. WHEAT: Wheat trade is 3 to 10 cents lower at midday with trade fading back from resistance levels and little fresh bullish news after the solid close to last week and KC taking the lead Monday morning. The downtrend in the dollar should keep encouraging short covering while wheat looks more competitive in feed rations. Weather in the Plains has some cold in it, but not enough to get the market excited right now with weekly crop progress expected to remain in line with the five-year average, and conditions steady. Weekly export inspections were a little soft at 458,432 metric tons. KC has narrowed to a 48-cent discount to Chicago with Minneapolis 13 cents above Chicago. KC May on the chart has support at the 20-day at $5.78 that we moved above last week, with $6.00 the next level of resistance. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.