Corn futures are 9 to 12 cents higher at midday Monday; soybean futures are 17 to 22 cents higher; wheat futures are 11 to 19 cents higher.
CORN:
Corn futures are 9 to 12 cents higher with firmer spread action as old-crop action rebounds a little bit and new crop holds just short of $7.00 so far. Ethanol margins will remain tight with the stocks overhang needing to be cleaned up into summer with some talk of bigger discretionary blending as part of the fuel price relief strategy.
The daily wire had the first confirmed sale to China in 11 months for old crop with 1.084 million metric tons (mmt) on the daily wire split two-thirds to old crop, with weekly export inspections remaining solid at 1.528 mmt. Early planting is going in the south with the Eastern Corn Belt is looking wet to start April with limited progress expected on the weekly progress report.
On the May contract chart we have resistance at the 20-day moving average at $7.48, which we are just short of overnight, and support the lower Bollinger Band at $7.27.
SOYBEANS:
Soybean futures are 17 to 22 cents higher at midday with consolidation ongoing after the washout last week as the front months remain below $16.00 and new crop holds above $14.00 as the late acre battle will expand with new-crop beans leading action Monday. Meal is $5.50 to $6.50 higher and oil is 40 to 50 points higher.
The export wire was quiet to start the week, with weekly export inspections edging slightly higher at 737,372 metric tons (mt). South America will continue to push forward harvest-wise with early planting still a bit off in the U.S. Crush margins will need one of the products to step forward and support margins with both well off the highs.
On the May soybean chart, we have support at the fresh low at $15.76 3/4 with the lower Bollinger band as resistance at $15.95, which we are just above at midday.
WHEAT:
Wheat futures are 11 to 19 cents higher at midday with buying ahead of the first national Crop Progress and Conditions report this afternoon. There is little progress toward peace as uncertainty continued to keep the market unsettled with trade fading back again from 30-cent higher levels early on.
Winter wheat has led with KC back to a 29-cent premium versus Chicago and -47 cents versus Minneapolis. Plains weather looks to be open this week with rains for the eastern growing areas possible with the second week potentially looking better. The first conditions and progress report will likely show conditions behind last year and progress near the 5-year average.
Weekly export inspections remained rangebound at 297,341 mt. The KC May chart has resistance at the 20-day moving average at $10.86, with support the lower Bollinger Band we tested and bounced from Tuesday at $9.97.
MARKET SUMMARY:
The U.S. stock market is mixed with the DOW flat. The U.S. Dollar Index is 20 points higher. Interest rate products are weaker. Energies are firmer with crude 3.50 higher. Livestock trade is weaker with hogs the downside leader. Precious metals are mostly higher with gold up 11.00.
