DTN Midday Grain Comments 03/01 10:50
Corn, Wheat Lower, Beans Higher at Midday Friday
Corn trade is 4-5 cents lower. Beans are 3-5 cents higher and wheat trade is
13-21 cents lower.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is mixed at midday with the S&P 17 points higher. The
dollar index is 15 points lower. The interest rate products are firmer.
Energies have crude 2.30 higher and natural gas .03 lower. Livestock trade is
mixed with cattle leading. Precious metals are firmer with gold up $30.
Corn trade is 4-5 cents lower at midday as we work to consolidate a weekly
gain with mostly steady spread action so far and a bit more day session
pressure with spillover from wheat. Ethanol margins are seeing a little
pressure from the corn rebound while blenders will benefit as spring blends
become more widespread into the next few weeks.
The daily wire was quiet again today. Basis should turn more sideways short
term after the end-of-the-month cash movement works through. Early second-crop
corn should continue to progress in Brazil with planting pace ahead of average
with eyes turning towards longer-term weather in the higher water demand season
into April. On the May chart, the 20-day at $4.35 is nearby resistance with the
lower Bollinger Band at $4.11 just above the $4.06 3/4 fresh low as support.
Soybean trade is 3-5 cents higher at midday with two-sided action as meal
attempts to lead the product complex and harvest pressure from Brazil lingers.
Meal is $2.50 to $3.50 higher and oil is 25 to 35 points lower. South American
weather should allow for Brazil's harvest to keep moving along as it heads to
the backstretch with Argentina seeing little pattern change short term.
The daily wire was quiet today. Basis should remain flat short term
domestically as March goes into delivery. May soybeans have resistance at the
20-day moving average at $11.73. The $11.30 1/4 fresh low scored yesterday is
nearby support with the lower Bollinger Band just below that at 11.26.
Wheat trade is 13-21 cents lower with sales picking up during the day
session and spreads mixed as we follow MATIF values back to the lower end of
the range. The Plains will see warmer-than-normal temps persist into March with
the midweek cold past us and better moisture possibilities into midmonth. The
dollar is a touch lower at midday, with Matif wheat washing back to fresh lows.
On the KC May chart, resistance is at the 20-day moving average at $5.89.
Support is the fresh low at $5.56 3/4 with the lower Bollinger Band just below
that at $5.53.
David Fiala can be reached at email@example.com.
Follow him on X, formerly Twitter, @davidfiala.
(c) Copyright 2024 DTN, LLC. All rights reserved.
For more free DTN information sent right to your email each morning - click here
to sign up for DTN Snapshot.