DTN Midday Grain Comments 04/21 11:28

DTN Midday Grain Comments 04/21 11:28 Futures Mostly Lower at Midday Trade is mostly lower in volatile trade at midday. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are mixed with the DOW futures down 20 points. Interest rate products are higher. The dollar index is 8 points higher. Energies are mixed with crude down .50. Livestock trade is mixed with feeder cattle higher. Precious metals are mxed with gold down $1.00. CORN Corn futures are 2 to 5 cents lower, bouncing off the dime lower level earlier this sessin. Ethanol margins remain somewhat stable with the energy complex matching the corn move. 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 warmer temperatures. South American weather looks to continue the recent pattern with second crop acres in Brazil warm and dry with pollenation ongoing with more talk of reduced production from Brazil with some excessively wet weather in Argentina. Brazil also suspended some corn import duties. The weekly export sales were strong at 1.22 million metric tons, with additional sales of 240,000 metric tons to Japan, mostly of old crop. Basis should be steady to weaker with the rally still shaking loose some bushels. On the chart support is the 200-day at $3.90 with resistance the $4.07 1/4 high from overnight. SOYBEANS Soybean futures have been very volatile with a 32-cent range so far after trading 25 higher overnight. Selling carried into the day session as trade has gotten fairly overbought. Meal is $3 to $4 higher and oil is 15 to 25 points lower. The front months have gained substantially vs. the back months this week with the July/August spread going to even or a slight inverse. Argentina harvest looks to be slowed again in the near term raising quality concerns along with quantity concerns, while Brazil should be mostly wrapped up. 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. The weekly export sales were solid at 407,700 metric tons of old crop, 339,700 of new crop, and 131,600 of meal, and 10,700 of oil. On the July soybean chart, the 10 dollar area is now support with the 10-day at $9.70 below that. The $10.43 3/4 contract high is now resistance. WHEAT Wheat futures were 1 to 4 cents lower across the three contracts at midday with trade rebounding off 12 lower levels early in the session, following the lead of the row crops. 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. Feed wheat is getting more attractively priced on the world market. The dollar has softened a bit overnight. The weekly export sales were improved at 295,100 metric tons of old crop, and 325,600 of new crop.. On the July KC chart the 20 and 50-day moving average at $4.77-79 is now nearby support with the 200-day at $5.08 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.