DTN Midday Grain Comments 04/23 11:04
Soybeans Continuing to Climb Midday Friday
Corn trade is narrowly mixed at midday, soybeans are 7 to 15 cents higher
and wheat is 2 cents lower to 3 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 170 points. The U.S. Dollar
Index is 0.25 lower. Interest rate products are weaker. Energies are firmer
with crude up $0.70. Livestock trade is firmer. Precious metals are mixed with
gold down $11.
Corn trade is narrowly mixed at midday with light profit taking overnight
and trade seeing solid spread action going into option expiration. Ethanol
margins remain strong with ethanol values holding the high end of the range
with demand improving. 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 with the hole in the Brazilian
forecast still there. Corn basis is holding firm throughout the belt. Guatemala
bought 136,680 metric tons of new-crop corn and unknown bought 336,000 metric
tons. On the May contract, chart resistance is the new contract high at $6.54
1/2 with support at the day low of $6.38.
Soybeans are 7 to 15 cents higher with strong spread action and early profit
taking turning to buying yet again. Meal is $2.50 to $3.50 higher and oil is
0.45 cent to .55 cent higher. Option expiration will keep volatility in play.
The cool weather should fade near term, allowing for better progress to be made
near term. South American harvest will continue to wrap up in Brazil in the
near term while shipping continues. China secured 132,000 metric tons of new
crop as well. On the May soybean chart, support is $15.00 with resistance at
the fresh high of $15.46.
Wheat trade is 2 cents lower to 3 cents higher at midday with spring wheat
leading as trade pauses to assess freeze issues along with row-crop direction
being a bit more mild. More seasonal temps should return to wheat growing areas
in the short term. The downtrend in the dollar is supportive for exports with
trade giving back yesterday's rebound easily. KC has widened back to a 42-cent
discount to Chicago with Minneapolis now 1 cent 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 $6.70 3/4.
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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