DTN Midday Grain Comments 04/10 11:32

DTN Midday Grain Comments 04/10 11:32 Corn Higher at Midday Flat to firmer trade is seen at midday with corn challenging our daily highs. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices have been mixed but are lower at midday with the Dow futures down 40 points. The interest rate products are higher. The dollar index is 20 points lower. Energies are higher with crude up $0.70. Livestock trade is mixed with cattle higher and hogs lower. Precious metals are lower with gold down 3.90. CORN Corn trade is 4 to 5 cents higher at midday with trade coming back from some initial weakness overnight. Support is noted coming from weather and nearby demand with the USDA posting a sale of 101,500 metric tons of old crop on the daily wire. Ethanol margins have firmed in the near term, but stocks remain ample going into spring with futures edging higher this morning. Basis should remain steady to firm start the week ahead of the monthly USDA World Agricultural Supply and Demand Estimates (WASDE) report tomorrow with large domestic and world numbers expected yet again. Fieldwork should progress in some areas while another system looks to move through the center of the belt. The weekly export inspections were off a bit at 1.170 million metric tons. On the May chart, support is at the $3.54 1/4 late March low then the $3.49 six-month low. SOYBEANS Soybean trade is flat to a penny higher at midday with early gains tied to harvest delays in Argentina fading. Meal is $1 higher and soybean oil is 25 points lower. Soybean trade remains oversold, which could encourage a bit of short profit taking looking toward the WASDE report tomorrow. It still feels like we may have a battle for less acreage rather than a battle for planted acreage as we have seen in most years due to two hefty balance sheets for corn and beans. Big supplies and low prices economically discourage production through questionable production profitability. The WASDE report is expected to reiterate the larger South American production. The weekly export inspections were decent at 832,957 metric tons. Support on May beans is at the $9.36 1/2 one-year low printed on Tuesday, then $9.22 which is the lower Bollinger Band, resistance is at the $9.50 10-day then the $9.72 20-day moving average. WHEAT Wheat trade is flat to 3 cents higher in quiet trade at midday with winter wheat finding some light buying. The forecast keeps the western edge of the belt drier with better rains to the east. The weekly crop conditions are expected to improve 1-2% with the export inspections posting a decent week at 641,365 metric tons. The WASDE report is expected to reconfirm the ample world stocks. 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 with South Dakota expected to see rain first. 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 $4.30. 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.