DTN Midday Grain Comments 05/02 11:24

DTN Midday Grain Comments 05/02 11:24 All Grains Lower at Midday Trade is lower across the board at midday, but beans are firming. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher, with the Dow up 75. The interest rate products are higher. The dollar index is 38 points lower. Energies are lower with crude down 0.60. Livestock trade is higher. Precious metals are mixed with gold up $7. CORN Corn trade is 4 to 6 cents lower at midday with trade finding some selling during the day session with improved weather in South America and concers about fund getting a bit overbought. South America will continue to be watched for production concerns on the second crop in Brazil along with slow harvest in Argentina. U.S. planting weather looks to open back up by the second half of the week, with progress and emergence expected to be ahead of normal on the report released this afternoon. Export inspections remained solid at 1.158 million metric tons. Ethanol margins should remain stable with the quiet start to the week. On the July chart support is the 200-day at 3.87 which we have edged below at midday with the 20-day at $3.79 below that, with resistance at the recent high at $4.07. SOYBEANS Soybean trade is flat to 4 cents lower at midday in quiet trade as it continues to consolidate in the upper end of the range. Meal is $2 to $3 higher and 40 to 50 points lower on oil. The momentum is flat to higher with beans in the upper half of the trading range at midday. Planting progress is expected to be around normal on the report this afternoon with planting expected to accelerate the second half of the week. Argentina harvest should start to gain more momentum soon with flooding starting to recede. The weekly export inspections were soft at 151,033 metric tons. On the July soybean chart the 10-day moving average at $10.18 is support with resistance at the $10.46 1/4 high put in Thursday. WHEAT Wheat trade is 2 to 8 cents lower at midday with the Kansas wheat tour starting this week after recent rains across much of the Southern Plains, which should add some pressure to start the week. The dollar is making new lows this morning, which should help to add some additional support to the market if sustained. The weekly condition report is expected to show some improvement for winter wheat with maturity remaining around normal, while spring wheat planting will continue to be planted quickly. The weekly export inspections were ok at 355,757 metric tons. The July Kansas City chart has resistance at the $4.75 20-day which we finished just above Friday but have failed to hold to start the week and support at the recent lows at $4.53. 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.