DTN Grain Midday: Futures Shooting for the Moon

    Soybean harvest. ©Debra L Ferguson

    Corn trade is limit higher at midday up 25 cents, soybeans are 37 to 39 cents higher and wheat 21 to 28 cents higher.


    The U.S. stock market is mixed with the Dow off 55 points. The U.S. Dollar Index has worked 0.16 higher off the lows. Interest rate products are mixed. Energies are firmer with crude up $0.20. Livestock trade is mixed. Precious metals are weaker with gold down $11.


    Corn trade is 25 cents higher again with fresh highs scored yet again and spillover from strong soybean action, dry weather in parts of Brazil and expected feed grain demand coming forward, and fear of missing out, pulling buyers in. Ethanol margins remain strong with ethanol trading at the highest level in quite some time. The cool weather should start to end near term with bigger rains expected into early May, while South America continues to worry on the double-crop corn ahead of pollination.

    Corn basis continues to hold firm throughout the belt. Weekly export sales were soft at 387,500 metric tons old crop and 29,500 of new crop. On the May contract, chart resistance is going to start of $6.60 but little has slowed trade this week, with support the prior high at $6.11.


    Soybeans are 36 to 38 cents higher with trade walking through the $15.00 area overnight with oil scoring new highs as well leading the charge. Meal is $7.00 to $8.00 higher and oil is 2.50 cents higher and locked limit. Active trade will likely continue ahead of option expiration with overbought conditions in play for the end of the week, keeping volatility higher. The cool weather will limit early planting and early development in the U.S., which will likely continue to limit sellers near term, but warmer and wet weather should replace cool temps short term.

    South American harvest will continue to wrap up in Brazil in the near term while shipping continues. Weekly export sales were 64,300 metric tons of old crop, 315,300 of new crop, 124,300 of old meal, 8,200 of new meal, and oil was 5,700 metric tons. On the May soybean chart, support is at the 10-day at $14.18 with resistance at the fresh high of $15.39.


    Wheat trade is 30 to 32 cents higher at midday following the lead of the row crops and MATIF wheat as the last day of cold air passes. The down trend in the dollar is supportive for exports with trade hanging at the lower end of the range. KC has widened back to a 42-cent discount to Chicago with Minneapolis now 6 cents above Chicago. Weekly export sales were decent at 240,200 metric tons of old, and 373,800 of new. KC May on the chart has support at the 50-day at $6.07, with resistance the fresh high scored at $6.66 Thursday.

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