Grains Mixed at Midday
Corn and wheat futures are firm at midday; beans slightly lower due to weather. Outside markets are bearish.
By David Fiala DTN Contributing Analyst
General Comments
Corn and wheat futures are firm at midday; beans slightly lower due to weather. U.S. stock markets are lower with Dow Jones futures down 150. Interest rate products are higher. The dollar index is 80 higher. Energies are lower with crude down $1.80. Livestock trade is firmer. Precious metals are mixed.
CORN
Corn futures are 1 higher in the May to 8 higher in new crop at midday. Trade is near the daily highs. Wet, cool weather and low planting progress numbers on Monday has sellers in corn backing off. The ethanol number this morning was lower than expected, which pressured corn briefly. Weather looks to keep everyone out of the field in the near term with hints at a pattern change at the end of the month. May futures have nearby support at $6.47, the 10-day moving average, and resistance at $6.74, the 20-day. Expect the market to likely repeat the mixed pre-midday action during the rest of the day.
SOYBEANS
Soybean futures are 1 to 4 lower after a mixed overnight trade. Meal is up $3 in the May to $1 lower in the December, bean oil is down 8 to 20 with new crop weaker. Spread movement is fairly neutral at midday. Outside market weakness has limited buying in beans, which may continue into the afternoon. Argentine farmers are reluctant to sell on inflation fears and Chinese prices have held up well. Basis has stayed firm as crush margins remain adequate and export interest has been best for soymeal. The May soybean chart has nearby support at the $14.08 20-day moving average, then the 10-day down at $13.93. Resistance is up at the 100-day at $14.26.
WHEAT
Wheat futures are up 7 to 11 at midday with a firm tone. Weather is expected to create additional problems with delays and damage in the near term. Chicago wheat is above the 10-day and 20-day moving averages at midday, the 50-day up at $7.18 is the next resistance. The 100-day would be the next level up at $7.81 if we can break above the 50-day. Prices are near the April highs at midday, so do not be surprised to see buys stops above the market if we find the buying needed to push to new April highs. Fundamentally Minneapolis wheat may take the upside leadership role again with e planting delays expected with the Dakota snowpack, but the chart buying has Chicago the firmest midday market.
David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Trading Adviser
(BS)
Copyright 2013 DTN/The Progressive Farmer. All rights reserved.
DTN Midday Comments on Grains
