DTN Midday Grain Comments 03/24 11:34
Grains Mixed at Midday
Beans are seeing double-digit midday losses and at five-month lows.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher with the Dow futures up 45 points.
The interest rate products are higher. The dollar index is 10 points lower.
Energies are higher with crude up $0.15. Livestock trade is mixed with cattle
higher and hogs lower. Precious metals are higher with gold up $2.
Corn trade is fractionally lower at midday, the daily range has only been 2
cents illustrating corn has some support here even though the chart looks
negative. The weekly export sales were strong on the report yesterday at 1.35
million metric tons of old crop and 127,100 of new crop. Demand is good with
basis improving this week. Lower prices are expected to lower planted acreage
as well. Spillover pressure from beans remains the market bears argument which
does hold validity, so there could still be some long liquidation if corn stays
near our 3-molnth lows. On the May chart support is at the $3.52 late December
low. Resistance is the 10-day at $3.61.
Soybean trade is 13 cents lower and near the daily lows at midday; meal is
down $3 a ton and soybean oil is down 68 points. Outside markets are fairly
neutral at midday. Ideas of big soybean acreage, a rising South American crop
size and chart pressure are challenges for the bull argument here. Long
liquidation is a concern this afternoon. On the May soybean chart nearby
support is hard to identify. The lower Bollinger Band is at $9.75, the 1 year
low is at $9.37 1/4. Resistance is at the 10-day and lowest major moving
average at $9.97.
Wheat trade is mixed at midday with Chicago 2 cents higher, Kansas City
steady and Minneapolis down 2 cents. The recent warmer weather has stressed the
crop on the plains but concerns are limited at the moment with the moisture
today. The dollar remains below the 100 mark but we need more sales to help out
the bull argument. Most expect wheat trade to remain mixed this afternoon, but
spillover pressure from beans is pulling on wheat at midday. On the May Kansas
Citycontract support is the recent low at $4.26 1/2, with resistance at the
100-day at $4.45.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at email@example.com
Follow Fiala on Twitter @davidfiala
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