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DTN Midday Grain Comments     04/03 11:22

   Midday Corn, Soybeans Lower; Wheat Higher

   Corn futures are 2 to 3 cents lower, soybeans are 2 to 5 cents lower, and 
wheat is 4 to 8 cents higher.  

By David Fiala
DTN Contributing Analyst

 General Comments



   The U.S. stock market is weaker with the Dow down 285 points. The dollar 
index is 60 points higher. Interest rate products are higher. Energies are 
firmer with crude 1.30 higher. Livestock trade is mostly lower. Precious metals 
are mixed with gold down 1.70.


   Corn futures are 2 to 3 cents lower at midday as early buying faded; 
new-crop trade is holding up better. Ethanol margins remain very poor, with 
unleaded bouncing a bit as the energy complex finds support on talk of 
production cuts overall, but we are still a ways from finding a current level 
of demand. Corn basis will likely remain sideways for now with much of the 
slowdowns priced in at this point. Rains will keep early fieldwork slow with 
warmer weather likely next week. China bought 567,000 metric tons (mt) of 
mostly new-crop corn. On the May contract, support is the lower Bollinger band 
at $3.23 and resistance the 20-day moving average at $3.50.


   Soybean futures are 2 to 5 cents lower with early buying fading and meal 
weakness weighing on the market. Meal is $5.00 to $6.00 lower and oil is 20 to 
30 points higher. South America is continuing to harvest with port disruptions 
the biggest concern, while the real remains very weak with some revision lower 
on production due to late dryness. New-crop soybeans will need to gain vs. corn 
to provide an acreage incentive with the price ratio failing to extend past 2.4 
with time running down to make changes. The May soybean chart support is the 
gap at $8.41 with resistance the 20-day moving average at $8.63.


   Wheat futures are 4 to 8 cents higher at midday with active trade getting 
back Thursday's losses overnight, but continuing to struggle to sustain 
overnight action as freezing temps moved across the Plains. There has been talk 
of new Middle East import tenders short term, but otherwise world export news 
is lacking. KC is at a 78-cent discount to Chicago on the May with choppy trade 
continuing, while Minneapolis is -23 with narrower action this week. The May KC 
chart support is the 20-day moving average at $4.62, with resistance the $5.13 
upper Bollinger Band. 

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser. 
He can be reached at 
Follow him on Twitter @davidfiala


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