DTN Midday Grain Comments 04/04 11:40

DTN Midday Grain Comments 04/04 11:40 Soybeans Sharply Down at Midday Wheat is again the midday leader with Kansas City up 4 cents at midday; beans are the big loser due to China Tariff news. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed at midday after trading sharply lower. The interest rate products are higher. The dollar index is 8 points lower. Energies are lower with crude down 40 cents. Livestock trade is mixed. Precious metals are mixed. CORN Corn trade is 7 cents lower at midday following a very poor overnight trade taking corn over 16 cents lower; erasing the gains seen last Thursday. China announced more tariffs, but uncertainty around them remains. Outside markets were negative but they are more neutral here at midday. Early fieldwork looks to remain slow for the bulk of the belt, especially for the Mississippi Delta and Ohio Valley with cold wet conditions, and cooler-than-normal temperatures expected to linger for a while. The export wire has been quiet to start the week. Ethanol continues to slip with corn and negative trade news or concerns. On the May chart we have a wild day; at midday we have resistance at the 20-day at $3.82 3/4 then the $3.92 1/2 high printed on Monday. Support is at the 200-day at $3.77 then the $3.72 low printed earlier. SOYBEANS Soybean trade is 31 to 35 cents lower at midday with a volatile negative session after China announced their intentions to place tariffs on US soybeans. Meal is $3 lower and oil is 65 points lower. South American harvest will continue to progress with wetter weather in Argentina for late action in the growing season. Active trade will continue to trade trying to decide what the effects of the ongoing trade issues will be. Trade will be looking for signs of additional acres, especially with a slow start to planting in the Dakotas on spring wheat. But of course this negative market action today is not buying more actions. The trade is seeing this as a very risking market moving forward day to day with buying interest under $10, an selling interest in the mid-$10 range. On the May contract the 200-day and lowest major moving average is at $10.02; our midday prince. Support below here is our overnight low at $9.83 1/2. Resistance is at the $10.10 100-day then the $10.35 20-day. WHEAT Wheat trade is 4 higher on Kansas City, steady on Chicago and Minneapolis at midday, but active. Spillover pressure from the row crops due to China news is noted stopping the upside wheat momentum. The poor weather conditions for the HRW belt continue to add support. Warmer weather for the Black Sea and continental Europe should help to support growth there, with their price advantage growing on the world market. On the May Kansas City contract support is at the 10-day at $4.71 with resistance at the $4.91 20-day moving average. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.