DTN Midday Grain Comments 04/20 11:19

DTN Midday Grain Comments 04/20 11:19 Wheat, Corn Higher at Midday Trade moves higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 45 points. The interest rate products are mostly lower. The dollar index is 30 points higher. Energies are higher with crude up 0.30. Livestock trade is mixed with hogs higher. Precious metals are flat with gold up $0.30. CORN Corn trade is 2 to 5 cents higher at midday with commercial buying and chart buying noted. The Planting progress will slow down with rains moving across much of the Corn Belt this week with showers lingering into next week in many areas despite higher temperatures. South American weather looks to continue the recent pattern with second crop acres in Brazil warm and dry with pollentation ongoing with more talk of reduced production from Brazil. Some improvement may show up in the updated forecast. Brazil also suspended some corn import duties. The USDA announced a 136,000 metric ton sale to unknown. The weekly ethanol production report showed production up 0.11%, with stocks down 1.21%, and gasoline demand 1.96% lower. Basis should be steady to weaker with the rally still shaking loose some bushels. On the chart we will call $3.75 nearby support then the $3.70 1/4 100-day. Nearby resistance was the 200-day at $3.86 which we have moved above at midday so now the $3.90 then $4 level are the next targets talke about. SOYBEANS Soybean trade is mixed at midday with some upside momentum. We have seen volatile two-sided action so far. Meal is $2 to $3 higher and oil is 20 to 30 points lower. Argentina harvest looks to gain some speed in the near term, while Brazil is in the wrapping up phase of harvest with prime shipment season getting going. Basis has softened with the sharp rally shaking bushels loose. Some early soybeans have started to be planted in the southern areas, but planting progress reports remain a couple weeks off with the slow progress the next week limiting the ability of the fast corn planters to follow up. On the May soybean chart, the 10-day at $9.47 then the 20-day at 9.28 are support. The $9.93 fresh high this morning is resistance. Short covering due to margin calls is likely to give us at least another upside move within this volatile session. WHEAT Wheat trade is 5 to 9 cents higher across the three contracts at midday with trade following row crop trade higher. Rains are expected in the eastern part of the belt over the next week, with the western areas more open. Stripe rust has been noted through much of Kansas with the wet weather bringing it back. European growth will be slowed with unseasonably cold temperatures, with warm dry weather continuing in India. The dollar has firmed a bit this morning. On the May Kansas City chart, the 20- and 50-day moving average at $4.66 is now nearby support with the 200-day at $4.99 resistance. 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.