DTN Midday Grain Comments 04/13 11:22

DTN Midday Grain Comments 04/13 11:22 All Grains Higher at Midday Trade is higher across the board at midday with beans at eight-month highs. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 150 points. The interest rate products are mostly higher. The dollar index is 75 points higher. Energies are mixed with crude down 0.20. Livestock trade is mostly lower. Precious metals are mixed with gold down $13. CORN Corn trade is 9 to 10 cents higher at midday due to spillover support from beans and some short covering. Planting progress should continue to expand through the end of the week so we do not see planting weather is behind the strength. Japan bought 110,088 metric tons of corn which is a small purchase. On the monthly WASDE report yesterday we came in fairly close to expecations with a domestic carryout of 1.862 billion bushels versus 1.837 in March and 1.849 expected. World stocks were 208.91 million metric tons up from 207 in March and 208 expected. Brazilian corn production was pegged at 84 million, and Argentina at 28 million up, these were steady to up slightly from March. So the report seen yesterday is not behind this strength with the numbers lightly negative to the market. The double crop area in Brazil is a bit on the dry side with pollentation starting, and Argentina is wet heading towards harvest which is lightly supportive weather items. The weekly ethanol production report showed production 3.9% lower, stocks were 0.46% higher, and gasoline demand was 4.43% higher. The stocks growth is not positive but ethanaol is up 4 cents a gallon due to spillover support from corn. On the chart we moved above the $3.70 3/4 100-day picking up buy stops, this is now nearby support with the 20-day at $3.64 below that. The $3.78 1/4 three-month high is restance than the 200-day at $3.87. SOYBEANS Soybean trade is 11 cents higher at midday with new highs for the move, meal is up $5 and bean oil up 15 ponts. Support is noted due to chart momentum and encouraged by stronger economic reports out of China. Brazilian political issues continue to loom with harvest wrapping up that is also keeping sellers away at the best opportunites to sell since late summer. The WASDE report reduced domestic carryout to 445 million bushels from 460 last month, and an aveage guess of 456. World carryout was put at 79.02 million metric tons, vs 78.9 in March, with Brazil production at 100 million metric tons, and Argentina at 59.0 up slightly from last month. On the May soybean chart, the 10-day at $9.18 then the 20-day at 9.12 are support. The $9.49 1/2 high overnight is now resistance than the $9.84 3/4 high printed in August. WHEAT Wheat trade is 2 to 10 cents higher across the three contracts at midday following the lead of the row crops. The winter wheat contracts are gaining on Minneapolis which is only up 2 cents. Forecasts for much better rain over the next seven days especially in SW Kansas and Oklahoma will limit upside crops badly needing a drink. The dollar has jumped sharply today which will limit upside. On the WASDE report wheat carryout was at 976 million bushels domestically, up from 966 last month, with world stocks up to 239.26 million metric tons up from 237.6 last month. On the May Kansas City chart the 10-day moving average at $4.61 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.