DTN Midday Grain Comments 04/12 11:04

DTN Midday Grain Comments 04/12 11:04 Grain Futures Higher at Midday Trade is higher across the board ahead of the WASDE report. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are higher with the DOW futures up 150 points. Interest rate products are higher. The dollar index is 10 points higher. Energies are higher with crude up 1.20. Livestock trade is mostly lower. Precious metals are mixed with gold down $1. CORN Corn futures were 6 to 8 cents higher at midday with trade seeing short-covering ahead of the report with support from the outside markets and soybeans, along with rumors of a surprise on the report. For the WASDE report, the average trade guess is for the carryout to be 1.847 billion bushels, with a 1.787 billion to 1.947 billion range, and up slightly from last month at 1.837 billion. World numbers are expected to be at 207.8 million metric tons with at 206-212 range vs. 207 million last month. Ethanol margins are giving back some of the recent gains with the corn rally this morning. Planting should ramp up through much of the Western Corn Belt this week, with rains not expected until this weekend with warmer temps coming. Chart support remains at the $3.47 1/4 contract low printed last week, with nearby resistance at the $3.64 1/2 20-day moving average which we are testing this morning. SOYBEANS Soybean futures continued to march higher this morning, with trade 7 to 9 cents higher with new highs being made again this morning. Meal is $5 to $5.50 higher and oil is 10 to 20 points lower. The average trade guess for the April WASDE report is 100.2 mmt for Brazilian production with a range of 99.5 mmt to 101 mmt. The domestic carryout is expected to be 456 million bushels. The range of expectations is 415 mb to 486 mb vs. 460 mb last month. Private sources have started to congregate in the 97 mmt to 99 million metric ton range with the Brazilian government moving to 99 million metric tons last week vs. the USDA at 100 mmt last month. Late harvest yields have been running lighter, and impeachment proceedings are continuing to progress. The Argentine production is expected to come in at 59.3 mmt versus the USDA 58.5 mmt last month. On the May soybean chart, the 10-day at $9.15 then the 20 and 200-day moving averages at $9.03-5 are support. The $9.37 1/2 high today is now resistance. WHEAT Wheat futures are 7 to 9 cents higher at midday following the lead of the row crops this morning following the sharply lower move Monday. Forecasts for much better rain over the next seven days especially in southwest Kansas and Oklahoma will limit upside. The dollar remains in the lower end of the recent range but export chatter is limited as the dollar has aways to go before the U.S. is very attractive on the world market. The weekly conditions report declined 3% to 56% good to excellent, and headed was at 5% vs. 7% on average. On the WASDE report wheat carryout at is expected to be at 979 million bushels, the range of expectations is 955 mb to 1007 million bushel range vs. 966 mb last month. World stocks are expected to be 237 million metric tons, with a range of 232 mmt to 238.5 million metric tons. On the May KC chart the 10-day moving average at $4.63 is resistance with the new $4.42 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.