DTN Midday Grain Comments 04/12 11:14

DTN Midday Grain Comments 04/12 11:14 Mixed Trade in Grains at Midday Soybeans lead trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the down 55 points. The interest rate products are higher. The dollar index is 11 points lower. Energies are mixed with crude down $0.15. Livestock trade is mixed. Precious metals are mostly higher with gold up 2.80. CORN Corn futures are 1 to 3 cents higher at midday with trade testing the upper end of the range this morning. On the report yesterday, carryout was left unchanged at 2.32 billion bushels, with world stocks are 223.0 million metric tons vs. 220.7 last month, vs. the average guess at 221.1. Brazil production was pegged at 93.5 vs. 91.5 last month, and Argentina at 38.5 vs. 37.5 last month. Ethanol margins have improved even with the corn bounce which should support grind and basis in the near term with the weekly report showing production down 3.2% lower, and stocks 3.4% lower. The center of the belt looks wet in the near term which should slow planting further with better progress made on the edges. On the May chart support is the 10-day at $3.64, and the 20-day at $3.63. Resistance is at the $3.69 1/2 50-day and highest major moving average. SOYBEANS Soybean trade is 5 to 10 cents higher at midday with trade continuing to firm off the fresh lows made post report. Meal is $2.50 to $3.50 higher and oil is 15 to 25 points higher. The WASDE report had domestic carryout at 445 million bushels, with world stocks at 87.4 million metric tons, up from 82.8 in March, with Brazilian production at 111.0 million metric tons up from 108 last month, and Argentina at 56.0 million up from 55.5 last month. 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 $9.29 1-year low printed this yesterday, then $9.22 which is the lower Bollinger Band, resistance is at the $9.44 1/2 10-day which we are above at midday then the $9.66 20-day moving average. WHEAT Wheat trade is narrowly mixed at midday with Minneapolis trade leading with trade holding onto the gains from yesterday. The WASDE report put domestic carryout at 1.159 billion bushels, up 30 million from last month, and world stocks at 252.3 up from 249.9 last month. The spring wheat areas have some near-term moisture coverage, but are mixed overall, with the west remaining drier for the winter wheat. The dollar set back should add support, but we remain in the upper end of the range. On the May KC contract support is at $4.15 4-month low then the $4.11 1/2 contract low. Resistance is at the 20-day at $4.29 which trade is trying to consolidate above this morning. 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.