DTN Midday Grain Comments 03/21 11:32
Grains Mixed at Midday
Soybeans are higher at midday, while wheat is lower.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are flat at midday with the Dow futures up 15
points. The interest rate products are firmer. The dollar index is 30 points
lower. Energies are higher with crude up 1.30. Livestock trade is mostly lower.
Precious metals are higher with gold down $12.40.
Corn trade is narrowly mixed at midday with trade continuing to consolidate
at the lower end of the March range. The weekly ethanol report had production
edging higher, stocks down 523,000 barrels, and gasoline demand holding up
well. Ethanol futures have edged higher. Post-weekly report and producer
margins remain solid. Double-crop areas in Brazil look to build some moisture
in the coming days; with early harvest expanding in Argentina. The daily wire
remains active to start the week with the brisk export pace continuing, and
South Korea buying 138,000 metric tons today. On the May chart, we slipped
below the 200-day moving average at $3.79, which is now resistance. The 50-day
at $3.73 1/2 is support.
Soybean trade is 2 to 6 cents higher with trade firming again after the
liquidation to start the week. Meal is $4 to $5 higher, and oil is 55 to 65
points higher. The weather pattern looks to return to some near term dryness
for much of South America with rains for much of the eastern belt incoming for
the United States, with southern planting off to a slow start. Crush margins
have improved with meal and oil both working higher today. The export wire has
been quiet with business shifting seasonally to Brazil. On the May contract,
support is the 50-day at 10.20 with resistance at the 20-day at 10.50.
Wheat trade is 3 to 9 cents lower at midday with fund selling continuing to
weigh on the market as long liquidation continues. The coming week looks drier
again, but growth should be boosted in the short term for many areas, with
better rains east of I-35 in the extended forecast. The dollar index remains
just below 90 on the index, with sideways trade continuing. Black Sea origin
prices have been more sideways, but the U.S. remains disadvantaged on the world
market. On the May Kansas City chart, wheat support is the lower bollinger band
at $4.60, with resistance the 100-day at $4.65.
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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