DTN Midday Grain Comments 04/11 12:08

DTN Midday Grain Comments 04/11 12:08 Corn, Wheat, Beans Lower at Midday Thursday Corn trade is 1-2 cents lower. Beans are 6-7 cents lower and wheat trade is 5-8 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed at midday Thursday with the S&P 7 points lower. The dollar index is up 20 points. The interest rate products are weaker. Energies are weaker with crude off 70 cents and natural gas down 10 cents. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up $9.50. CORN: Corn is 1-2 cents lower at midday with trade again fading from a test of nearby resistance overnight ahead of the report. On the report, trade is looking for carryout at 2.102 billion bushels, down slightly from last month with little change overall to South American numbers. Conab lowered Brazil's production estimates to just below 111 million metric tons. Ethanol margins remain sideways with better nearby driving demand needed to boost margins for producers. The daily wire remained quiet with weekly sales slumping to 325,500 metric tons, a marketing year low. Basis should remain steady to firm short term as field work picks up. Near-term weather looks to warm up enough to push fieldwork in the drier spots with rains to slow action in the southern and eastern growing areas. The second crop in Brazil should continue to develop with limited short-term concerns. On the May chart, the 20-day at $4.35 is nearby resistance which we tested overnight with our support the lower Bollinger Band at $4.27. SOYBEANS: Soybean trade is 6-7 cents lower at midday with action continuing to grind along the lower end of the range with products generally seeing broader pressure so far this week. Meal is $1.50 to $2.50 higher and oil is 135 to 145 points lower. On the report, trade is looking for carryout at 317 million bushels, up slightly from last month with South American estimates little changed. Conab reduced Brazilian estimates to 146.5 mmt as well. South America continues to see few issues short term as harvest rolls on in Brazil and the growing season winds down in Argentina. The daily wire was quiet after the midweek sales with weekly sales remaining soft seasonally at 305,300 mt old crop, 187,900 of old crop meal, 53,400 of new, and oil at 4,300. Planting in the U.S. should start to advance with warmer temps in some areas of the US, but overall progress will remain limited until mid-month. May soybean futures have support at the $11.62 lower Bollinger Band which we are just below at midday. Chart resistance is at the 20-day moving average at $11.88 which we faded from Monday. WHEAT: Wheat trade is 5-8 cents lower at midday as look to consolidate the Wednesday gains in KC again as the overall choppy trade has continued with tests of both ends of the range so far this week. The Plains will see seasonal temperatures short term with a bit drier short-term look for the hard red winter areas with better moisture in the extended forecast with mixed Euro and Black Sea weather continuing. The dollar is back to the recent highs with light buying after the second inflation number this morning with MATIF wheat edging lower. According to the report, trade is looking for carryout to rise slightly to 690 million bushels. Weekly export sales were in line with recent weeks at 80,700 mt old, and 274,400 of new. On the KC May chart, support is the 20-day at $5.80 that we popped back through yesterday, with the upper Bollinger band at $5.95 as resistance. David Fiala can be reached at dfiala@futuresone.com. Follow him on X, formerly Twitter, @davidfiala. (c) Copyright 2024 DTN, LLC. All rights reserved.