DTN Midday Grain Comments 04/21 10:55
Corn, Soybeans and Wheat Rallying Together
Corn is 14 to 16 cents higher at midday, soybeans are 18 to 20 cents higher
and wheat 8 to 17 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 140 points. The U.S. Dollar
Index is 0.12 lower. Interest rate products are weaker. Energies are lower with
crude down $0.70. Livestock trade is weaker. Precious metals are firmer with
gold up $15.
Corn trade is 14 to 16 cents higher at midday with fresh highs again being
scored after a brief bout of selling early as spread trade and weather concerns
continue to lead the market. The weekly ethanol report showed production
unchanged with stocks 71,000 barrels lower. The cool weather should start to
end near term with bigger rains expected into early May, while South America
continues to worry on the double-crop corn ahead of pollination. Corn basis
continues to hold firm throughout the belt. On the May contract, chart
resistance is the gap area at $6.22, which we are testing at midday with
support at the $5.84 10-day moving average then the 20-day at $5.68.
Soybeans are 19 to 21 cents higher at midday with fresh highs being scored
again for the move as soybean oil continues to lead the complex. Meal is
narrowly mixed with soy oil 1.60 cents to 1.70 cents higher. Active trade will
likely continue ahead of option expiration with overbought conditions in play.
The cool weather will limit early planting and early development in the U.S.,
which will likely continue to limit sellers near term. China continues to make
noises about reducing soy import needs but the market remains unimpressed on
that front. On the May soybean chart, support is at the 10-day at $14.18 with
resistance at the $15 level.
Wheat trade is 11 to 15 cents higher with Chicago trade leading as trade
will assess the impact of cold air on the developing crop with one more day of
the cold trend. Support continues to spillover from row crops as well. The
downtrend in the dollar is supportive for exports with trade hanging at the
lower end of the range. KC has widened back to a 43-cent discount to Chicago
with Minneapolis now 8 above Chicago. KC May on the chart has support at the
50-day at $6.07, with resistance at our recent high of $6.35 3/4 then the $6.64
contract high printed in late February.
David Fiala can be reached at email@example.com
Follow him on Twitter @davidfiala
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