DTN Grain Close: Corn Posts Small Loss After Ethanol Production Falls Further

Young corn plants. Photo: Ohio State University

May corn ended down 1 1/2 cent Wednesday, not showing much response to the Department of Energy’s news that ethanol production fell to its lowest level on record last week. Soybeans were mixed and wheat prices were mostly higher on a quieter day of trading when other commodities were mixed.

 

Midday: Corn is 2 to 3 cents lower, soybeans are flat to 1 cent lower, and wheat is flat to 6 cents higher.

CORN

Corn trade is 2 to 3 cents lower at midday with early gains fading as positive news remains lacking. Ethanol margins remain very poor, with the weekly report showing production sharply lower as expected, down 168,000 barrels per day, with stocks up 1.374 million barrels to a record high.

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 before declining into next week. On the report tomorrow, carryout is expected to rise to 2.035 billion from 1.892 last month.

On the May contract, support is the lower Bollinger Band at $3.22, and resistance the 20-day at $3.43.

SOYBEANS

Soybean trade is flat to 2 cents lower with choppy trade so far with little fresh news. Meal is flat to $1.00 higher, with oil 30 to 40 points lower. South America is continuing to harvest with port disruptions the biggest concern, with weak currencies helping local profitability.

Corn is holding vs. soybeans for new crop overnight, with soybeans remaining reluctant to buy acres. On the report, carryout is expected to be 430 million bushels, basically unchanged.

The May soybean chart support is the gap at $8.41, with resistance the 20-day at $8.60, which we are just below overnight.

WHEAT

Wheat trade is flat to 6 cents higher at midday with rangebound trade ongoing with good support on breaks, but limited buying enthusiasm to push the market and the higher protein classes leading.

There has been talk of new Middle East import tenders short term, with Russia still refining export and transport protocols, amid a dry start to the spring. Kansas City is at a 72-cent discount to Chicago on the May with choppy trade continuing, while Minneapolis is minus 19 with narrower action to start the week.

On the report, carryout is expected to remain unchanged at 940 million bushels. The May Kansas City chart support is the 20-day at $4.69, with resistance the $5.00 area.

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