DTN Midday Grain Comments 05/01 12:41

DTN Midday Grain Comments 05/01 12:41 All Grains Lower at Midday Corn is 2 to 3 cents lower, soybeans are 4 to 6 cents lower, and wheat is 4 to 8 cents lower. David Fiala,DTN Contributing Analyst General Comments The U.S. stock market is weaker with the Dow 510 points lower as active trade continues. The dollar index is 12 lower. Interest rate products are weaker. Energies are mostly lower with crude $0.30 higher. Livestock trade is sharply higher. Precious metals are mixed with gold up $10.00. CORN Corn trade is 2 to 3 cents lower with broad commodity weakness at midday pushing trade back from the strength seen Thursday. The ethanol margins have improved for the plants that are still running with the stocks decline and demand rebound adding support, although we will need much more before plants restart. Weather looks to allow many areas to keep making progress with most of the rain to the east, with the west getting on the dry side in spots. Basis faded to end last week with sideways action likely to continue. On the July contract support is continuous chart low at 3.00 1/2, and resistance the 20-day at 3.26. SOYBEANS Soybean trade is 4 to 6 cents lower with the real sliding again and short covering slowing as we start May, along with the resurgence of trade worries coming forward even with the USDA announcing 264,000 metric tons sold to China. Meal is 1.00 to 2.00 lower and oil is 30 to 40 points lower. South America continues to move along harvest wise with some shipping slowdowns in Argentina due to weather and low water levels. Soybeans have gained again corn the last few days but not enough to make major changes in acreage with planting starting to run well ahead of normal. The July soybean chart support is the lower Bollinger Band at $8.27, with resistance the 20-day at $8.49 which is where we are at midday, then the upper Bollinger Band at $8.72 WHEAT Wheat trade is 4 to 8 cents lower with trade giving back the last surge from yesterday. Russia and Europe look to catch better rains short term to ease dryness while U.S. crop conditions have trended drier in the west. Kansas City is at a 37-cent discount to Chicago on the July while Minneapolis is minus 6 with action steady this week. The lower dollar trend should be supportive if sustained. The July Kansas City chart support is the lower Bollinger Band at $4.70, with resistance the 20-day at $4.88. 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 (KM) (c) Copyright 2020 DTN, LLC. All rights reserved.