Row-Crop Markets Digest Rain Relief for Planting Season

EARLY MORNING GLOBEX NET CHANGES: May corn is up 3 1/2 cents per bushel, May soybeans are up 6 cents, July KC wheat is down 4 1/4 cents, May Chicago wheat is down 4 1/2 cents, and MIAX July Minneapolis wheat is up 0.0025 cents.

CME Globex Recap: On Tuesday, May corn rose 2 3/4 cents, May soybeans dropped 4 1/4 cents, and May KC wheat rose by 19 1/2 cents. Corn, soybean, soft red winter wheat, and hard red spring wheat basis levels were all unchanged on Tuesday, while hard red winter wheat basis was stronger. Wheat finished up double digits for the second session in a row on drier crop conditions for the remainder of April. Corn benefited from the wheat rally. Optimism for peace talks this week between the U.S. and Iran weakened the energy markets. That said, soybean oil prices faded, pressuring the soybean futures. U.S. wheat growing weather and corn and soybean planting weather are taking center stage in the markets. The U.S. Central Command reported on Tuesday that a blockade of Iranian ports is giving U.F. forces maritime superiority in the Middle East. The Energy Information Administration will release its weekly Petroleum Status report on Wednesday morning at 9:30 a.m. CDT.

OUTSIDE MARKETS: The previous close on Tuesday showed the Dow Jones Industrial Average up 317.74 points at 48,535.99, and the S&P 500 up 81.14 points at 6,967.38. The 10-Year Treasury yield ended at 4.256%. Early Wednesday, the June Dow Jones Futures are down 4 points. European markets are higher, with the spot futures of London’s FTSE 100 trading up 0.09%, spot futures of Germany’s DAX are trading up 0.14%, and the spot futures of France’s CAC 40 Index are down 0.56%. Asian markets are higher, with Japan’s Nikkei 225 Index up 0.44% and China’s Shanghai Composite Index up 0.01%.

The June Euro is down 0.001 at 1.182, and the June U.S. Dollar Index is up 0.062 at 97.970. The June 30-Year T-Bond is up 1/32nds, while June gold is down $25.90 at $4,824.20, and May crude oil is up $0.68 at $91.96. On China’s Dalian Exchange, May corn was steady, while May soybeans were down 1.13%, September soybean meal was down 0.24%, and June Malaysian Palm Oil was trading up 0.18%.

MORE COMMODITY-SPECIFIC COMMENTS

CORN:

Corn futures are up 3 1/2 cents early Wednesday, with the May contract at $4.43 per bushel. The national average basis for corn was steady at 37 cents under the May futures contract, while the DTN National Corn Index was up 4 cents at $4.06. Technically, the May futures contract faces resistance at $4.50 and support at $4.40. Though U.S. corn planting is 5% completed and near normal levels at this time of the year, rain could delay fieldwork next week. The rain is much needed for soil moisture. Brazil’s safrinha corn crop size was raised on Tuesday to 109.1 mmt. That crop will pollinate in the next few weeks. Analysts expect the EIA to peg ethanol production for the week ended April 10 at 1.0 to 1.1 million barrels per day, in line with the previous week’s output. Ethanol stocks are seen at 26.0-26.8 million barrels, nearly unchanged from the previous week.

SOYBEANS:

Soybean futures are up 6 cents on Wednesday, with May at $11.63 per bushel. The national average basis for soybeans was also steady at 67 cents under the May futures, while the DTN National Soybean Index was down 4 cents at $10.91. Technically, the May futures contract’s support level is at $11.60. That level was penetrated for the first time since February on Tuesday. Traders, while keeping an eye on the probabilities of a U.S.-China trade meeting in a month, are also beginning to focus on U.S. acreage shifts from corn to beans. Conab pegged Brazil’s 2026 soybean production at 179.2 mmt, a 4.5% increase from last year’s record output. Argentina’s soybean farmers, beginning harvest, will most likely face delays due to rain.

WHEAT:

Wheat futures are down 4 1/4 cents early Wednesday morning, with the July contract at $5.92 per bushel. The KC wheat futures have rallied 32 cents in the first two days of the week. Fertilizer supply concerns and a drier forecast for the wheat belt through to the end of April are price supportive. The national average basis for hard red winter (HRW) wheat was 1 cent stronger at 70 cents under the May futures contract, and the DTN National Hard Red Winter Wheat Index was up 21 cents at $5.52. The national average basis for hard red spring (HRS) wheat was steady at 36 cents under the MIAX Minneapolis May futures contract, while the DTN National Hard Red Spring Wheat Index was up 14 cents at $6.02.