DTN Midday Grain Comments 05/04 11:20

DTN Midday Grain Comments 05/04 11:20 Wheat, Soy Higher at Midday Trade is mixed to lightly higher at midday with some upside momentum following the double digit Tuesday losses. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower, with the Dow down 100. The interest rate products are mixed. The dollar index is 32 points higher. Energies are mixed with crude down 0.05. Livestock trade is mixed. Precious metals are lower with gold down $9. CORN Corn trade is narrowly mixed at midday in quiet trade with a 6 cent range so far. Weather is warming which is welcome and will be good for the crop. Basis has started to stabilze after dropping off sharply with the rally. Brazilian double crop corn size will continue to be debated with some sources indicating much higher acres than expected offsetting dryness. The weekly ethanol production report showed production down 0.43%, stocks up 2.64%, and gasoline demand was 2.01% higher. Japan bought 107,500 metric tons of new-crop corn. On the July chart, trade has set back below the 10-day and 200-day moving averages at $3.86 and the 20-day at 3.80, which are now resistance and the 50-day at $3.72 is support with trade just below the 20-day at midday. SOYBEANS Soybean trade is 5 to 9 cents higher at midday with trade finding some light buying during the day session so far. Meal is $3 to $4 higher and oil is 15 to 25 points higher. The market will start to focus on saturated areas where corn planting could get late and move to beans, otherwise for the start of May the planting progress is a fairly neutral market item at this juncture. Increased acres from corn could become more of a factor. Harvest progress should continue to pick up in South America with questions remaining about quantity and quality in Argentina. The momentum lower has stalled this morning, keeping more support in place on the chart. On the July soybean chart the 10-day moving average at $10.24 is support which we are testing this morning with resistance at the $10.57 high printed yesterday. WHEAT Wheat trade is 1 to 4 cents higher at midday across the three contracts with support from improved row crop trade. The Kansas wheat tour will continue through the end of the week, with a mixed of disease and strong yield potential found so far. World weather is fairly benign at this point, although the Candadian Prairie has been pretty dry this spring. The July Kansas City chart has resistance at the $4.74 20-day with support at the recent and contract lows printed in March at $4.52 3/4 which we are just above today. 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.