DTN Midday Grain Comments 04/21 11:00

DTN Midday Grain Comments 04/21 11:00 Grains Trending Lower at Midday Corn is 6 to 7 cents lower, soybeans are 8 to 9 cents lower, and wheat is flat to 6 cents lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow down 675 points as active trade continues. The dollar index is 20 points higher. Interest rate products are firmer. Energies are mostly lower with June crude down $6.30. Livestock trade is mostly lower. Precious metals are weaker with gold down $16.00. CORN Corn trade is 6 to 7 cents lower at midday with trade seeing pressure from the collapse in oil and broad overall weakness with trade bouncing off the $3.01 continuous chart low for now. Ethanol production is still looking to stabilize at a level, and will need to see significant stock drawdowns to restart the plants as we reopen various states over the coming weeks. Weather looks to allow many areas to plant this week, with progress at 7% vs. 9% on average on the weekly progress report. Basis should remain sideways near term. On the May contract support is continuous chart low at $3.01, and resistance the 20-day at $3.31. SOYBEANS Soybean trade is 6 to 8 cents lower with fresh lows amid broad market weakness and the continued erosion of product values with meal trying to firm at midday. Meal is narrowly mixed and oil is 90 to 100 points lower. South America continues to head toward a dry finish to the year with harvest moving forward at a good clip, and a focus on shipping and currencies remaining in place with the ral staying near the lows and Brazil shipping to Asia in full swing now. Soybeans continue to lose ground vs. corn, limiting acre swing potential for now with 2% of the crop planted vs. 1% on average. The May soybean chart support is the $8.00 area, with resistance the lower Bollinger Band at $8.17, which we are around at midday. WHEAT Wheat trade is flat to 6 cents lower with trade finding support from continued concerns about Northern Hemisphere conditions underpinning the market near the recent highs with spillover from the outside markets limiting upside. Russia remains dry short term in many areas, with some market intervention sales short term, while better rains are forecast in some areas, with France trending drier as well. Kansas City is at a 54-cent discount to Chicago on the May while Minneapolis is minus 41 with wider action today. Weekly conditions showed good to excellent down 5% to 57% good to excellent, and 13% poor to very poor with 14% headed vs. 18% on average. Spring wheat is 7% planted vs. 18% on average. The May Kansas City chart support with support the 20-day at $4.83, which we are back above with the upper Bollinger Band at $5.03 the next round up which we have tested this morning with the new high at 5.07 3/4, before pulling back. 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.