DTN Midday Grain Comments 04/07 11:23

DTN Midday Grain Comments 04/07 11:23 Beans, Wheat Lower at Midday Corn trade higher at midday, soybeans and wheat lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 160 points. The interest rate products are lower. The dollar index is narrowly mixed. Energies are lower with crude up 0.80. Livestock trade is lower. Precious metals are mixed with gold up $17. CORN Corn trade is 2 to 3 cents higher at midday with trade firming during the day session despite outside market weakness. Ethanol margins improved a bit yesterday with stocks draw pushing futures higher with some more follow through this morning, while the setback in unleaded prices has crimped blender margins. Weather looks to be fairly open in the Western Corn Belt while the Eastern Belt will have field work and plantings slowed by the cooler and wetter pattern. The front-month spreads have firmed with the Goldman roll getting underway plus the lack of farmer movement boosting basis in some areas. The weekly export sales were good at 945,200 metric tons of old crop, 175,100 of new crop, along with Japan buying 145,544 metric tons of old crop. The low the day prior to the bearish USDA acreage number was $3.66 3/4 which is a resistance point with first resistance at the $3.64 1/2 20-day moving average. Chart support remains at the $3.47 1/4 low. SOYBEANS Soybean trade is 2 to 4 cents lower in fairly quiet midday trade with the market expected to remain choppy in the near term. Meal is flat to $1 lower, and oil is 25 to 35 points lower. South American harvest will continue to move along, making additional supplies available on the world market, while on the political front the impeachment efforts vs. the Brazilian president are being fast tracked. US exports in the coming year will be the largest usage category uncertainty with the risk of lower exports. We have not seen a situation post South American harvest with this large a supply in the side world market. The Brazilian government did reduce crop size expectations to 97.5 million metric tons this morning, but that remains a large crop. The weekly export sales were mixed with 420,400 metric tons of beans, 23,300 of meal, and 7,600 of oil. On the May soybean chart, the 20- and 200-day moving aveages at $9.03 are support. The 10-day at 9.10 1/2 is nearby resistance with the $9.22 1/4 five-month high major resistance. WHEAT Wheat trade is flat to 3 cents lower at midday with limited action so far today. The Southern Plains will see limited moisture in the near term, but conditions remain generally good for right now with the second half of April expected to see moisture. However, moisture is getting short in many areas. The dollar remains in the lower end of the recent range. Egypt bought wheat from France yesterday. Weather needs to give us direction as we move forward this month. The weekly export sales were very poor at -58,100 of old crop and 159,300 of new crop. On the May Kansas City chart we traded below the 50-day moving average at $4.70, which is now resistance with the $4.47 1/4 contract low notable support. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.