DTN Midday Grain Comments 04/05 11:20

DTN Midday Grain Comments 04/05 11:20 Grains Trending Higher at Midday Soybeans are firm at midday, leading corn and wheat higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 101 points. The interest rate products are flat to slightly higher. The dollar index is 6 points higher. Energies are mixed with crude down $0.10. Livestock trade is lower. Precious metals are mixed with gold down 8.60. CORN Corn trade is a penny higher at midday with light two-sided slow trade; beans are providing some spillover support. The ample stocks of corn will continue to hang over the market to limit rallies with wet weather confined to the center of the belt for now. The corn gains versus soybeans have weakened the last two days which should keep acre switching talk at a minimum for now. The weekly ethanol production was down 35,000 barrels per day, stocks were 448,000 higher, and gasoline demand was off slightly. Basis should remain steady to firm in the near term. On the May chart support is at the $3.52 late December low with the 10-day at $3.60, and the 20-day at $3.61. Resistance is at the $3.67 100-day which we have been unable to close above so far. SOYBEANS Soybean trade is 5 to 7 cents higher at midday with some short profit taking showing up overnight. Meal is $2 higher and soybean oil is 35 points higher. Basis should remain fairly steady in the near term with movement slowing for spring. Near term wet weather in the US should keep acres in soybeans for now. Trade is fairly heavily oversold for now, which could induce further short covering in the near term. Trade put in a new low by 3/4 of a cent yesterday with the $9.36 1/2 half area becoming support. Resistance is the 10-day at $9.61, with the 20-day at $9.81 above that. WHEAT Wheat trade is mixed at midday with Kansas City trade showing the most support with light buying trying to build with drier weather for the Plains after some central Kansas rains last night. Warmer weather should support growth in the near term. The spring wheat areas look fairly dry in the near term for the Dakotas with the longer-term forecast looking for normal to above normal moisture as planting starts. The dollar remains above 100 on the index. On the May Kansas City contract support is at the daily low at $4.15 then the $4.11 1/2 contract low. Resistance is at the 10-day at $4.22, which we have edged above overnight. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.