DTN Midday Grain Comments 04/07 11:15

DTN Midday Grain Comments 04/07 11:15 Corn, Soybeans Higher at Midday Corn is 4 to 6 cents higher, soybeans are 3 to 4 cents higher and wheat is 2 to 7 cents lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is firmer with the Dow up 600 points as active trade continues. The dollar index is 75 points lower. Interest rate products are weaker. Energies are weaker with crude $0.30 lower. Livestock trade is sharply higher. Precious metals are firmer with gold up $1.00. CORN Corn trade is 4 to 6 cents higher at midday Tuesday with light buying as trade looks to ease oversold conditions amid broader market optimism. Ethanol margins remain very poor, with trade still needing to find a level of demand that it is comfortable with in the short term, with demand needing to come back more than the need for oil prices firming, along with storage running short. Corn basis will likely remain sideways for now with much of the slowdown priced in at this point. Warmer weather will aid early week progress. On the May contract support is the lower Bollinger band at $3.21, and resistance the 20-day at $3.45. SOYBEANS Soybean trade is 2 to 4 cents higher overnight at midday Tuesday with two-sided trade continuing with breaks supported, but buying drying up on challenges of resistance. Meal is $1.50 to $2.50 lower, with oil 0.60 cent to 0.70 cent higher. South America is continuing to harvest with port disruptions the biggest concern, while the real remains very weak with some revision lower on production due to late dryness. Corn is gaining versus soybeans for new crop overnight, with soybeans remaining reluctant to defend acres. The May soybean chart support is the gap at $8.41, with resistance the 20-day at $8.61, which we are just below at midday. WHEAT Wheat trade is 3 to 7 cents lower at midday with the short-term weather threat passed for now, with little other fresh news to push short-term buying. There has been talk of new Middle East import tenders short term, with Russia still refining export and transport protocols, amid a dry start to the spring. KC is at a 78-cent discount to Chicago on the May with choppy trade continuing, while Minneapolis is -29 cents, with wider action to start the week. The May KC chart support is the 20-day at $4.66, with resistance the $5.00 area. 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 (AG) Copyright 2020 DTN/The Progressive Farmer. All rights reserved.