DTN Grain Midday: Wheat Moves Higher

Green wheat field. Photo: Stephen Wegulo, UNL

Corn is 1 to 3 cents lower, soybeans are 3 to 5 cents lower, and wheat is 3 to 9 cents higher.

CORN

Corn trade is 1 to 3 cents lower at midday with rangebound action continuing heading towards the weekend. Ethanol margins remain very poor, with more plants shutting down, with ethanol still trade at 45-50 cent premium to unleaded as demand collapses.

Corn basis will likely continue to see pressure except for export oriented locations. Rains have worked across much of the Corn Belt short term to slow early field work with the extended forecast looking drier. More corn hit the export wire with 114,048 metric tons sold to unknown.

On the May contract support is the lower Bollinger band at $3.28, and resistance the 20-day at $3.57.

SOYBEANS

Soybean trade is 3 to 5 cents lower at midday with the overnight highs fading once again. Meal is $1.00 to $2.00 lower and oil is 10 to 20 points higher.

South America is continuing to harvest with port disruptions this biggest concern at the moment with talks of strikes in Argentina as well, while the Brazilian ral has gained a little vs. the dollar this week.

New crop soybeans will need to gain vs. corn to provide an acreage incentive with the price ratio now at 2.4 or so. The daily wire showed 163,290 metric tons old to Mexico.

The May soybean chart support is the 20-day at 8.71, and the recent high at $8.97 as resistance.

WHEAT

Wheat trade is 3 to 9 cents higher at midday with trade finding buying again overnight after the pullback yesterday, as Kansas City trade tries to consolidate above $4.90. Weather threats remain limited for now.

Russia continues to review export policies for the short term as well. Kansas City is at a 77-cent discount to Chicago on the May with choppy trade continuing, while Minneapolis is minus 39 with wider action continuing. World export business has shifted towards Asia short term.

The May Kansas City chart support is the old high at $4.93, and resistance the January high at $5.05.

General Comments

The U.S. stock market is weaker with the Dow down 770 points as active trade continues. The dollar index is 10 points lower. Interest rate products are mostly higher. Energies are mostly lower with crude 1.10 lower. Livestock trade is sharply lower. Precious metals are weaker with gold down 25.00.

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