DTN Midday Grain Comments 03/24 10:50

DTN Midday Grain Comments     03/24 10:50

   Grain Futures Looking Green Midday Friday

   Corn trade is 5 to 6 cents higher, beans are flat to 2 cents higher and 
wheat trade is 11 to 18 cents higher. The U.S. stock market is weaker with the 
S&P off 25 points. The U.S. Dollar Index is 0.20 lower. Interest rate products 
are firmer. Energies are mixed with crude off 1.55 cents and natural gas up 4 
cents. Livestock trade is mostly higher. Precious metals are mixed with gold 
off $2.00.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn trade is 5 to 6 cents higher, beans are flat to 2 cents higher and 
wheat trade is 11 to 18 cents higher. The U.S. stock market is weaker with the 
S&P off 25 points. The U.S. Dollar Index is 0.20 lower. Interest rate products 
are firmer. Energies are mixed with crude off 1.55 cents and natural gas up 4 
cents. Livestock trade is mostly higher. Precious metals are mixed with gold 
off $2.00.

CORN:

   Corn trade is 5 to 6 cents higher at midday Friday with spread action mostly 
firmer again and trade trying to follow the lead of wheat, with action fading 
from the early highs at midday. Ethanol margins will need more help from 
unleaded to boost blender action, with old crop corn firming and spring driving 
demand off to a good start while unleaded values struggle with the risk-off 
action in energies. Basis has continued to generally drift back higher. China 
continued to secure old crop corn with another 204,000 metric tons on the daily 
wire. The second crop in Brazil is heading towards the better part of the 
growing season with trade watching forecasts into April for development with 
some concerns on the horizon. On the May chart, we are just above the 20-day, 
which is now support at $6.30, and resistance is at the $6.45 high printed 
Friday morning.

SOYBEANS:

   Soybean action is flat to 2 cents higher with better strength in the back 
months as we work to ease deeply oversold conditions but struggle to sustain 
strength at midday, especially with product action still wobbly. Meal is $1.00 
to $2.00 higher and oil is 0.90 cent to 1.00 cent higher. With South American 
new crop beans becoming available export news has remained limited. China 
values have seen pressure as well with African swine fever demand questions 
helping to keep sellers motivated. Basis has generally remained solid short 
term with the market still showing a substantial inverse. May chart resistance 
is now at the lower Bollinger Band at $14.26 with support at the $14.05 fresh 
low scored Friday.

WHEAT:

   Wheat trade is 11 to 18 cents higher with trade well off the early higher 
scored during the day session with talk of Russia potentially slowing their own 
exports, with buying fading as we got towards the middle of the session. 
Weather will continue to support KC action with the western plains to continue 
to struggle with moisture to the east. The weaker dollar will add support if 
sustained with it still in the lower end of the range with the strength Friday, 
while Matif wheat is solidly higher Friday as well. Little other change is 
noted on the world scene for now as India presses into harvest and other 
northern hemisphere weather issues are limited for now. On the KC May Chart, 
the 20-day is support at $8.14 with the Friday morning high at $8.61 1/4 
becoming resistance.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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