DTN Midday Grain Comments 03/27 10:57
Wheat Higher at Midday
Corn is 1 to 3 cents lower, soybeans are 3 to 5 cents lower, and wheat is 3
to 9 cents higher.
By David Fiala
DTN Contributing Analyst
The U.S. stock market is weaker with the Dow down 770 points as active trade
continues. The dollar index is 10 points lower. Interest rate products are
mostly higher. Energies are mostly lower with crude 1.10 lower. Livestock trade
is sharply lower. Precious metals are weaker with gold down 25.00.
Corn trade is 1 to 3 cents lower at midday with rangebound action continuing
heading towards the weekend. Ethanol margins remain very poor, with more plants
shutting down, with ethanol still trade at 45-50 cent premium to unleaded as
demand collapses. Corn basis will likely continue to see pressure except for
export oriented locations. Rains have worked across much of the Corn Belt short
term to slow early field work with the extended forecast looking drier. More
corn hit the export wire with 114,048 metric tons sold to unknown. On the May
contract support is the lower Bollinger band at $3.28, and resistance the
20-day at $3.57.
Soybean trade is 3 to 5 cents lower at midday with the overnight highs
fading once again. Meal is $1.00 to $2.00 lower and oil is 10 to 20 points
higher. South America is continuing to harvest with port disruptions this
biggest concern at the moment with talks of strikes in Argentina as well, while
the Brazilian ral has gained a little vs. the dollar this week. New crop
soybeans will need to gain vs. corn to provide an acreage incentive with the
price ratio now at 2.4 or so. The daily wire showed 163,290 metric tons old to
Mexico. The May soybean chart support is the 20-day at 8.71, and the recent
high at $8.97 as resistance.
Wheat trade is 3 to 9 cents higher at midday with trade finding buying again
overnight after the pullback yesterday, as Kansas City trade tries to
consolidate above $4.90. Weather threats remain limited for now. Russia
continues to review export policies for the short term as well. Kansas City is
at a 77-cent discount to Chicago on the May with choppy trade continuing, while
Minneapolis is minus 39 with wider action continuing. World export business has
shifted towards Asia short term. The May Kansas City chart support is the old
high at $4.93, and resistance the January high at $5.05.
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
Copyright 2020 DTN/The Progressive Farmer. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up