DTN Midday Grain Comments 04/06 11:17

DTN Midday Grain Comments 04/06 11:17 All Grains Lower at Midday Slow lower trade is seen at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 60 points. The interest rate products are lower. The dollar index is 18 points higher. Energies are higher with crude up $0.10. Livestock trade is lower. Precious metals are mixed with gold up 4.30. CORN Corn trade 3 cents lower at midday and near the daily low. Corn is now about a dime below the post USDA report highs reached on Monday due to the lower than expected 2017 March Planting Intensions survey. Ethanol futures are lower which appears to be pulling corn down. The weekly exports sales were strong at 1.14 million metric tons of old crop, and 34,600 metric tons of new. Basis should remain steady to firm going into the weekend of the board slips. Weather should allow for field work which has worked against the bull argument the past few sessions. On the May chart support is at the $3.52 late December low with the 10-day at $3.60 3/4 nearby support. Resistance is at the $3.67 100-day moving average. SOYBEANS Soybean trade is 3 to 4 cents lower at midday and near the daily lows; trade was up a few cents earlier in the session. Meal is off around $1 and soybean oil is off 25 points. Near term weather looks to trend drier for the middle of the belt which should keep all intended corn acres in place. Typically a firm market to compete for acreage or final undecided acres can occur, but due to big supplies and big projected new crop balance sheets there appears to be no acreage struggle this year. Maybe rather a acreage discouragement battle with the way the trade has acted this week with only a minor corrective short profit taking bounce. Trade is fairly heavily oversold so bounces should be seen as well as some days where long liquidation could take us to new lows. The weekly export sales were decent for April at 482,000 metric tons of old crop, 395,000 of new crop, 229,100 of old crop meal, and 22,400 of oil. Support is at the $9.48 3/4 6-month low printed on Monday, then $9.40 which is the lower Bollinger Band, resistance is at the $9.61 10-day then the $9.78 20-day moving average. WHEAT Wheat trade is 3 to 5 cents lower across the three markets overnight. Spillover direction from the row crops and chart pressure are noted for the lower trade. Oklahoma and Texas look wetter in the near term with Kansas seeing more limited rains. Warmer weather should support growth in the near term so weather appears to be a neutral to negative market influence today. The spring wheat areas look fairly dry in the near term with the longer-term forecast looking for normal to above-normal moisture as planting starts. The weekly export sales were OK at 568,400 metric tons of old crop, and 87,000 of new crop. On the May Kansas City contract support is at $4.15 then the $4.11 1/2 contract low. Resistance is at the 20-day at $4.32. 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.