DTN Midday Grain Comments 04/07 11:15
Corn, Soybeans Higher at Midday
Corn is 4 to 6 cents higher, soybeans are 3 to 4 cents higher and wheat is 2
to 7 cents lower.
By David Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 600 points as active trade
continues. The dollar index is 75 points lower. Interest rate products are
weaker. Energies are weaker with crude $0.30 lower. Livestock trade is sharply
higher. Precious metals are firmer with gold up $1.00.
Corn trade is 4 to 6 cents higher at midday Tuesday with light buying as
trade looks to ease oversold conditions amid broader market optimism. Ethanol
margins remain very poor, with trade still needing to find a level of demand
that it is comfortable with in the short term, with demand needing to come back
more than the need for oil prices firming, along with storage running short.
Corn basis will likely remain sideways for now with much of the slowdown priced
in at this point. Warmer weather will aid early week progress. On the May
contract support is the lower Bollinger band at $3.21, and resistance the
20-day at $3.45.
Soybean trade is 2 to 4 cents higher overnight at midday Tuesday with
two-sided trade continuing with breaks supported, but buying drying up on
challenges of resistance. Meal is $1.50 to $2.50 lower, with oil 0.60 cent to
0.70 cent higher. South America is continuing to harvest with port disruptions
the biggest concern, while the real remains very weak with some revision lower
on production due to late dryness. Corn is gaining versus soybeans for new crop
overnight, with soybeans remaining reluctant to defend acres. The May soybean
chart support is the gap at $8.41, with resistance the 20-day at $8.61, which
we are just below at midday.
Wheat trade is 3 to 7 cents lower at midday with the short-term weather
threat passed for now, with little other fresh news to push short-term buying.
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.
KC is at a 78-cent discount to Chicago on the May with choppy trade continuing,
while Minneapolis is -29 cents, with wider action to start the week. The May KC
chart support is the 20-day at $4.66, with resistance the $5.00 area.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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