DTN Midday Grain Comments 04/18 11:30

DTN Midday Grain Comments 04/18 11:30 Soybeans Lower at Midday Beans have double-digit losses at midday; Minneapolis wheat near double-digit gains. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow 100 points lower. The interest rate products are higher. The dollar index is 45 points lower. Energies are lower with crude down $0.12. Livestock trade is mostly lower. Precious metals are lower with gold down 2.50. CORN Corn trade is 4 cents lower at midday with the weaker soybean trade providing spillover pressure. Also a more open forecast in some areas is expected to allow good planting progress in the week ahead. Ethanol margins should remain stable with help from lower corn trade with energy seeing pressure as well. Our good demand helps provide good support in the low end of our range as does concerns over planted acreage. The center of the belt looks wet this week which should slow planting and fieldwork activity but the near term coverage looks heavier in the southern parts of the belt that may be further along already. Planting progress is just behind normal at 6% complete vs. 12% last year, and 9% on average. On the May chart support is the 20-day at $3.62, after we failed to hold the 100-day at $3.66 this morning. Resistance is at the 1-month high printed on Friday at $3.73 then the 1-year high at $3.87 1/4 printed in February. SOYBEANS Soybean trade is 8 to 12 cents lower with selling returning with product values leading trade lower after we failed to move higher to open the week. Meal is $3 to $4 lower and oil is 45 to 55 points lower. Support on May beans is at the $9.45 10-day which we have moved below at midday then the $9.29 3/4 1-year low printed last Tuesday. Resistance is at the $9.59 20-day moving average which we tested overnight. South American harvest is on the back stretch, and trade may look to discourage US soybean acreage with the slow pace of corn planting early on. The Monday high was just over 30 cents above the fresh 1-year low. That is a 20% retracement of the January-April break; heavy resistance should be found around the 40% retracement around $9.80 on the nearby trade. WHEAT Wheat trade is around steady on the winter wheat contracts to 9 cents higher on Minneapolis at midday. Good rains are expected to continue to improve conditions with the western edge of the belt expected to catch better coverage this time. The weekly condition report pegged winter wheat at 54% good to excellent, up 1% on the week. Progress had heading at 19% versus 11% last year, and 13% on average. Spring wheat areas look wet enough to keep planting behind our normal pace. Weekly progress was at 13% versus 25% last year, and the 21% on average. Warm weather will encourage growth before the cold snap for a few days, but no excessive cold is expected on the current forecasts. The dollar index has slipped back below 100 today adding support as well. On the May KC contract support is at the $4.15 4-month low with resistance at the $4.25 20-day moving average. We tested support 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.