DTN Grain Close: Commodities Respond to a Glimmer of Hope?

Young corn rows. ©Debra L Ferguson

Two days of more stable death counts in New York offered a glimmer of hope that the spread of coronavirus may be slowing, allowing the stock market and most commodity prices to trade higher Monday. Not joining the trend, May corn finished down 3 cents, still pressured by sharp reductions in ethanol production.


Midday: Corn is 4 to 5 cents lower, soybeans are 1 to 2 cents higher, and wheat is 4 to 7 cents higher.


Corn trade is 4 to 5 cents lower at midday with trade continuing to see pressure as we grind along the lower end of the range with little fresh news and planting likely to expand in some areas early in the week Ethanol margins remain very poor, with trade still needing to find a level of demand that it’s comfortable with short term.

Corn basis will likely remain sideways for now with much of the slowdowns priced in at this point. Warmer weather will aid early week progress. Weekly export inspections were strong at 1.271 million metric tons.

On the May contract support is the lower Bollinger band at $3.20, and resistance the 20-day at $3.47.


Soybean trade is 1 to 2 cents higher at midday with light two sided trade so far with support from declines in South American production, but pressure from their continued cheap currencies and demand concerns.

Meal is $5.00 to $6.00 lower, and oil is 40 to 50 points higher. South America is continuing to harvest with port disruptions this biggest concern, while the real remains very weak with some revision lower on production due to late dryness.

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 inspections were soft at 298,124 metric tons.

The May soybean chart support is the gap at $8.41, with resistance the 20-day at $8.62.


Wheat trade is 4 to 8 cents higher at midday with frost across the Plains adding support, along with concerns about other exporting nations coming forward but little fresh news on that front.

There has been talk of new Middle East import tenders short term, but otherwise world export news remains lacking with Algeria passing on tenders. Kansas City is at a 78-cent discount to Chicago on the May with choppy trade continuing, while Minneapolis is -29 with wider action to start the week.

Weekly export inspections were soft at 320,371 metric tons. The May Kansas City chart support is the 20-day at $4.65, with resistance the $5.00 area.

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