DTN Midday Grain Comments 04/11 11:04

DTN Midday Grain Comments 04/11 11:04 Grains Mixed at Midday Beans are lower, corn slightly higher and wheat mixed in pre-report action. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the dow 100 points. The interest rate products are higher. The dollar index is 40 points lower. Energies are lower with crude down $0.20. Livestock trade is mostly lower. Precious metals are mostly higher with gold up 20.90. CORN Corn futures are a penny higher at midday with slow trade ahead of the April USDA release of the monthly World Agricultural Supply and Demand Estimates (WASDE). The average guess for the updated domestic carryover is at 2.341 billion bushels versus 2.32 on the March report. The world carryover is at 221.8 million metric tons versus 200.7 last month. Ethanol margins have improved even with the corn bounce which should support grind and basis in the near term. The center of the belt looks wet in the near term which should slow planting further with better progress made on the edges. The weekly progress report listed 3% of the corn crop planted versus 4% a year ago and 3% on average. On the May chart support is at the $3.54 1/4 late March low then the $3.49 6-month low. Resistance is at the $3.69 1/2 50-day and highest major moving average. SOYBEANS Soybean trade is 4 to 7 cents lower ahead of the report with trade making a fresh low at $9.34 1/4 this morning. Meal is $1.50 to $2.50 lower and oil is 10 to 20 points lower. On the report larger carryouts may encourage fresh selling, but we never need to price in a big drop so early with the average soybean guess at 446 million bushels, and world at 84.1 million metric tons. Argentina harvest will likely continue to struggle with wet conditions in the near term, but some relief is on the way. Crush margins domestically and in China have struggled in recent days as well. Support on May beans is at the $9.34 1/4 1-year low printed this morning, then $9.22 which is the lower Bollinger Band, resistance is at the $9.46 1/2 10-day then the $9.69 20-day moving average. Expect volatility around the report release in the morning. WHEAT Wheat trade is mixed at midday with Chicago trade edging slightly higher. The forecast keeps the western edge of the belt drier with better rains to the east. The WASDE report is expected to reconfirm the ample domestic and world stocks in the morning which is generally a bearish reminder to the market with the average guesses at 1.15 billion bushels, and world at 250.2 million metric tons. The spring wheat areas look dry with the longer term forecast looking for normal to above normal moisture with South Dakota favored. The weekly winter wheat condition report listed good to excellent ratings at 53% versus 56% a year ago and 51% last week. Progress noted 9% of the winter wheat heading versus 6% on average. The spring wheat plantings were listed at 5% complete versus the 11% average pace. On the May Kansas City contract support is at $4.15 four-month low then the $4.11 1/2 contract low. Resistance is at the 20-day at $4.29. 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.