DTN Midday Grain Comments     03/28 10:46

   Soybean, Wheat Futures Higher at Midday; Corn Lower

   Corn futures are 1 to 2 cents lower at midday Tuesday; soybean futures are 
13 to 15 cents higher; wheat futures are 2 to 8 cents higher.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn futures are 1 to 2 cents lower at midday Tuesday; soybean futures are 
13 to 15 cents higher; wheat futures are 2 to 8 cents higher. The U.S. stock 
market is mixed with the S&P off 5 points. The U.S. Dollar Index is 35 points 
lower. Interest rate products are weaker. Energies are firmer with crude up .25 
and natural gas up a penny. Livestock trade is mixed. Precious metals are 
firmer with gold up 15.00.

CORN:

   Corn futures are 1 to 2 cents lower in quiet midday trade with mixed spread 
action after the inverses softened to start the week with trade consolidating 
the upper end of the range with momentum slowing. Ethanol margins will need 
more help from unleaded to boost blender action with firming corn values 
crimping margins again despite the uptick in demand. Basis has continued to 
generally drift back higher. The daily export wire showed 136,000 metric tons 
(mt) of corn sold to China today as the recent hot streak continues. The second 
crop in Brazil is heading toward the better part of the growing season with 
trade watching forecasts into April for development with some concerns on the 
horizon in Central Brazil short term. On the May chart we are solidly above the 
20-day moving average which is now support at $6.32, and resistance is at the 
Upper Bollinger Band at $6.51, which we tested this morning.

SOYBEANS:

   Soybean futures are 13 to 15 cents higher at midday with firmer spread 
action as we continue to rebound after coming off oversold conditions with meal 
back to leading the product complex. Meal is $8.00 to $9.00 higher and oil is 
flat to 15 points higher. With South American new-crop beans becoming 
available, export news has remained limited in recent days. China values have 
slowed their washout as well, helping to find some stability. Basis has 
generally remained solid short term with the market still showing a substantial 
inverse even with recent narrowing. May chart support is now at the lower 
Bollinger Band at $14.22, which we pushed back above Monday with further 
support at the $14.05 fresh low scored Friday, while the 20-day moving average 
is well above the market at $14.84.

WHEAT:

   Wheat futures are 2 to 8 cents higher at midday with KC action leading as 
crop development concerns add support along with the momentum being higher at 
the moment as the KC/Chicago spread continues to widen at levels not seen for 
11 years. Weather will continue to support KC action with the western Plains to 
continue to struggle with moisture to the east, while early spring wheat 
progress will be limited with cold and snow delaying the start of the season. 
The U.S. dollar remains toward the lower end of the range, while Matif wheat is 
off a little this morning to limit Chicago gains. Little other change is noted 
on the world scene for now as India presses into harvest and other Northern 
Hemisphere weather issues are limited for now with Australia planting on the 
horizon. On the KC May Chart the 20-day is support at $8.19 with the fresh high 
at $8.73 becoming resistance for now.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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