DTN Midday Grain Comments 05/04 11:31

DTN Midday Grain Comments 05/04 11:31 All Grains Lower at Midday Sharply lower wheat trade leads row crops lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the dow futures 15 lower. The interest rate products are lower. The dollar index is 18 lower. Energies are lower with crude down 1.60. Livestock trade is mixed. Precious metals are lower with gold $20 lower. CORN Corn trade is 7 cents lower at midday with trade setting back today with the forward forecast starting to dry out after the current batch of rains along with the weaker wheat trade. Ethanol futures are under pressure today down 3 cents at midday with crude and unleaded under pressure. Corn basis is expected to remain steady in the near term with some potential pressure from farmer movement as fieldwork slows. The weekly export sales were a bit softer at 771,600 metric tons old crop, and 24,100 of new crop. So really just a lack of fresh supportive news to report at midday which could lead to some chart selling or long liquidation yet today. In the bigger picture this weakness will continue to work against corn acres. The July chart support is the recent low at $3.60 3/4 after we filled the gap at $3.69 this morning. SOYBEANS Soybean trade is 3 to 8 cents lower at midday with trade fading back off fresh monthly highs scored in early day session trade today. Meal is $1.50 to $2.50 lower and oil is flat to 10 points lower. Soybean planting will be slowed by the weather as well, but the longer planting may help find more bean acres with progress likely to accelerate next week. Basis has remained fairly steady with good nearby demand. Strong movement is expected to continue from South America in the near term as the harvest wraps up. Weekly export sales were mediocre at 318,500 of old crop, 12,800 of new, 103,600 of meal, and 10,800 of oil. July soybean chart support is the 10-day at $9.65, and the 20-day at 9.61, with resistance the 50-day at 9.89. WHEAT Wheat trade is 13 to 17 cents lower at midday with selling returning as the Kansas wheat tour works itself into the better looking areas of Central Kansas with western Kansas damage still uncertain. Weather looks to warm back up and drier for much of the west in the near term, with cold air potentially threatening the soft winter wheat in the near term. World weather will become more of an issue with Russia and Europe attracting more focus soon. The dollar is just below the 99 level on the index. The weekly export sales were good at 258,400 metric tons of old crop, and 563,400 metric of new crop. On the July Kansas City contract support is the 200-day at 4.55 with the gap at 4.43 below that, and resistance the recent high at $4.74. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.