DTN Grain Midday: Early Gains Fade

Young corn rows. ©Debra L Ferguson

Corn is 2 to 3 cents higher, soybeans are narrowly mixed, and wheat is 4 to 10 cents lower.

CORN

Corn trade is 2 to 3 cents higher at midday with spillover support from energies as trade remains range bound with early gains fading again. Ethanol margins remain very poor, with unleaded bouncing a bit as the energy complex tries to find a level to consolidate at with ethanol futures flat.

Corn basis will likely continue to see pressure except for export-oriented locations. Rains will keep early fieldwork slow. Weekly export sales remained solid at 1.08 million metric tons (mmt).

On the May contract, support is the lower Bollinger band at $3.25, and resistance is the 20-day at $3.55.

SOYBEANS

Soybeans trade are narrowly mixed at midday with active two-sided trade continuing after breaking support levels Wednesday. Meal is $3.00 to $4.00 lower, and oil is 25 to 35 points higher. South America is continuing to harvest with port disruptions this biggest concern, while the real remains very weak.

New-crop soybeans will need to gain vs. corn to provide an acreage incentive with the price ratio failing to extend past 2.4 with time running down to make material changes.

Weekly export sales were mixed at 957,400 metric tons (mt) of old-crop beans, 114,000 of new, 125,900 of old meal, and a marketing-year high of 67,000 of oil.

The May soybean chart support is the gap at $8.41, with resistance the 20-day at $8.67.

WHEAT

Wheat trade is 5 to 10 cents lower at midday with long liquidation resuming overnight as we continue to pull back from the recent highs with little fresh news. There has been talk of new Middle East import tenders short term, but otherwise world export news remains lacking.

KC is at a 78-cent discount to Chicago on the May with choppy trade continuing, while Minneapolis is -23 with narrower action this week. Weekly export sales were disappointing at 72,900 mt of old crop and 185,900 metric tons of new crop.

The May KC chart support is the 20-day at $4.62, with resistance the $5.13 upper Bollinger band.

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