Grain prices survived a lower start and a time change hangover to finish a little higher on the day, a slight rebound from Friday’s lower closes. May Minneapolis wheat lead the sector with a 7-cent gain and help from commercial buying.
Midday: Mixed trade is seen at midday following the week of active trade last week.
Corn trade is a penny lower at midday with trade fractionally to around 3 cents lower since the overnight open. Ethanol margins remain positive with spring driving season rapidly approaching, with futures consolidating over the $1.50 area last week, with a flat trend to start the week.
Double-crop areas in Brazil look to build some moisture in the coming days; planting has about caught up to normal. Argentina should see some relief rains this week. The weekly export inspections were solid at 1.376 million metric tons, with the daily wire featuring sales to Japan of 107,542 metric tons, and 254,800 metric tons to unknown.
On the May chart support is at the 10-day at $3.87 that with resistance becoming the $3.93 3/4 high scored last week.
Soybean trade is 1 to 3 cents higher at midday with trade bouncing off the initial overnight lows during the day session. Meal is $2.50 to $3.50 lower and oil is narrowly mixed. The weather pattern is bringing some rain to parts of Argentina with Brazil remaining mostly the same in the next week.
The erosion of meal values is causing crush margins to retreat from the highs, with meal sliding rapidly. Weekly export inspections were a little soft at 910,237 metric tons.
On the May contract, support is the 50-day at 10.11 below that, with resistance the 20-day at 10.48 which we slumped below Friday.
Wheat trade is flat to 5 cents lower at midday with trade seeing further selling after the poor finish to last week. Plains weather continues to be stressful with wind taxing the already short moisture conditions in the west with better conditions in the east, but some improvement may be possible on the weekly conditions as more of the crop comes out of dormancy.
The dollar index remains in the 90 range on the index, drifting just below there this morning. Black Sea-origin prices have drifted lower, solidifying their advantage. Weekly export inspections were disappointing at 389,353 metric tons.
On the May Kansas City wheat support is at the 20-day at 5.09, with the 10-day at $5.29 becoming resistance.