DTN Midday Grain Comments 05/10 10:54

DTN Midday Grain Comments 05/10 10:54 Grains Mixed at Midday Trade is mixed at midday ahead of the WASDE report. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 10. The interest rate products are mostly higher. The dollar index is 6 lower. Energies are sharply higher with crude up 1.40. Livestock trade is mixed. Precious metals are mixed with gold $5.20 higher. CORN Corn trade is narrowly mixed at midday ahead of the report; trade is so slow our daily range on July is only 2 1/2 cents. But with the first new crop balance sheet we could still have some action at 11. The weekly EIA report had ethanol production up 2%, stocks were down -.68%, and gasoline demand was 2.8% higher but ethanol futures are lower at midday even with crude up $1.40. Corn basis is expected to remain steady to firm this week with farmers getting back in the fields. More wet weather could keep shipping issues present in the Ohio and Mississippi Valleys; the weather forecasts lacking consistency. In the bigger picture the lower prices and wet start to the planting season in areas will work against corn acres which could offset a negative USDA report this morning. The monthly USDA World Agricultural Supply and Demand Estimates (WASDE) are due out at 11, with expectations for old crop carryout at 2.331 billion bushels, and new at 2.135 billion. The July chart support is at the $3.60 3/4 four-month low. Resistance is at the $3.74 100-day moving average. SOYBEANS Soybean trade is 3 cents higher at midday with trade chopping along the upper end of the one-month trading range ahead of the report. Meal is $1 to $2 higher, and oil is 10 to 20 points lower. Basis has remained fairly steady with good nearby demand. Strong movement and sales competition is expected to continue from South America as we move into summer. The WASDE report is expected to show old crop carryout at 441 million bushels and new crop at 566 million with further upward revision of South American production. The initial USDA usage estimates are important to market movement after the report; we should trade the report today then the market bias toward agreement or disagreement with the USDA after that. Weather is viewed as neutral at this juncture. July soybean chart support is the 20-day at 9.65 then the $9.41 April low. Resistance is at the 50-day at 9.86. WHEAT Wheat trade is 1 to 5 cents lower ahead of the report with trade continuing to see light selling with larger numbers expected to be confirmed again on the report. Wet weather looks to linger for the storm damaged areas of the west, which could enhance disease issues with warmer temps helping to push the crop along. The Dakotas should have made good progress this week reducing concerns about spring wheat but some areas remain dry so conditions may start out well below year ago levels but the forecast is trying to bring them more rain. The report is expected to show carryout at 1.163 billion on old crop, 935 million bushels on new, with production at 1.859 billion for all wheat. On the July Kansas City contract support is the yesterday low at $4.34 below that and the 50-day at 4.48 above that as resistance. 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.