DTN Grain Midday: Seeing Gains

    Corn is 6 to 8 cents higher, soybeans are 12 to 13 cents higher and wheat is 2 to 3 cents higher.

    The U.S. stock market is weaker with the Dow down 90 points. The U.S. Dollar Index is 0.40 higher. Interest rate products are mixed. Energies are firmer with crude up $1.60. Livestock trade is mixed. Precious metals are mixed with gold down $6.00.

    CORN:

    Corn trade is 6 to 8 cents higher at midday Friday with active range-bound action continuing as we head towards the weekend. Spread action is remaining firm. Ethanol margins are seeing support from energy values and rising world ethanol prices, as well as spring driving demand. The daily export wire has remained quiet for the most part this week.

    Basis should remain sideways short term as warmer weather will help move grain to town with near-harvest pace of inbound bushels in some areas. Double-crop planting in Brazil is well underway as well but behind the usual pace. On the May contract, resistance is the 20-day at $5.45, which we have struggled to challenge this week, with the lower Bollinger Band at $5.29 as support, which we bounced off overnight.

    SOYBEANS:

    Soybeans are 12 to 13 cents higher at midday with trade bouncing off a test of support. Spread action is solid as trade continues to work the upper end of the range after failing to extend gains on Thursday. Meal is narrowly mixed and oil is 0.90 cent to 1.00 cent higher.

    Basis will likely remain flat at strong levels with slower movement as the export program winds down and a bigger focus is on crush margins heading into spring. Brazil should remain rainy in the short term for most with shipments building up steam and a record long line of ships to load. Argentina is remaining mostly dry short term. The May chart has resistance at the recent high at $14.45, with support the 20-day at $13.92.

    WHEAT:

    Wheat trade is 2 to 3 cents higher at midday with range-bound action continuing short term. Trade is looking for a spark from weather to regain momentum along with further support from the row crops. The dollar is just below 92 points on the index, getting back to the upper end of the range. Further consolidation is needed at the upper end of the range with concerns on the Fed fighting inflation triggering a bit a flight to safety action. The Plains should see warmer weather, bringing the crop closer to exiting dormancy soon with some dry pockets persisting and spotty light rains possible. KC is at 30-cent discount to Chicago and Minneapolis is at a 15-cent discount. KC May chart support is the lower Bollinger Band at $6.09, with resistance the 20-day at $6.35, which we are just below.

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