DTN Midday Grain Comments 04/08 11:33

DTN Midday Grain Comments 04/08 11:33 Soybeans Leading Grains Higher at Midday Beans are seeing double-digit gains at midday keeping corn green. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 40 points. The interest rate products are lower. The dollar index is 25 points lower. Energies are higher with crude up 2.40. Livestock trade is mixed with cattle firm, but hogs lower. Precious metals are higher with gold up $4. CORN Corn trade is fractionally to a penny higher at midday after trading a few cents lower early. Outside market support and spillover support from beans appears to be why we are higher at midday. Ethanol margins have improved for producers but blenders are still struggling to justify higher ethanol blending. The 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 ongoing. The USDA announced 120,000 metric tons sold to unknown. Chart support remains at the $3.47 1/4 low with resistance at the $3.64 1/2 20-day moving average. SOYBEANS Soybean trade is 10 to 11 cents higher at midday with trade moving towards the upper end of the range this morning. Meal is $5 to $6 higher, and oil is 10 to 20 points lower despite outside market support. Meal for a change is behind some soybean gains. Brazilian unrest continues with impeachment proceedings moving along, which will continue to effect currency trade. The Brazilian government did reduce crop size expectations to 97.5 million metric tons this morning, but that remains a large crop. This and the uncertainty is helping support futures here at midday. In the big picture the market will continue to be well supplied. On the May soybean chart, the 20- and 200-day moving aveages at $9.03-5 are support. The 10-day at 9.10 1/2 was nearby resistance but we are above it at midday. The $9.22 1/4 5-month high is major resistance. WHEAT Wheat trade is 3 to 6 cents higher at midday across the three contracts with trade chopping along at the bottom of the range. The Southern Plains look to see limited moisture in the near term, but conditions remain generally good for right now with the second half of April expected to see an upturn in moisture. If that moisture does not materialize, conditions could decline rapidly. The dollar remains in the lower end of the recent range. Egypt bought wheat from Italy yesterday. Weather needs to give us direction as we move forward this month along with condition reports. On the May KC 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.