DTN Midday Grain Comments 05/04 10:55

DTN Midday Grain Comments 05/04 10:55 All Grains Lower at Midday Wheat and soybeans are the downside leaders at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 250 points. The interest rate products are higher. The dollar index is 35 points higher. Energies are lower with crude down 0.50. Livestock trade is mixed. Precious metals are weaker with gold down 1.80. CORN Corn trade is 1 to 2 cents lower at midday with trade pulling back slightly from the fresh highs scored yesterday, and each day this week. Futures are getting a bit overbought up here around our 10-month highs. Rains will slow planting through the middle of the belt, but warmer temps should boost early growth with plenty of progress made this week. The second-crop areas of Brazil look to remain on the dry side in the near term as well, with some potential relief rains showing up. Ethanol margins will need futures to continue their midweek bounce to catch up to the firmer corn trade, with slightly lower trade this morning. On the July chart we are above the 20-day at $3.96 which remains support, with resistance the fresh high at $4.06 3/4 scored Thursday. SOYBEANS Soybean trade is 9 to 13 cents lower at midday with trade giving back the late gains from yesterday with a lack on confirmation on fresh China news. Meal is $4 to $5 lower and oil is 5 to 15 points lower. The recent pattern in South America should remain intact near term allowing for greater progress in Brazil harvesting, with the stronger dollar and cheaper real encouraging sales and export business, along with the weaker Argentina peso. Meal is just below $400 a ton with the early weakness, with trade needing to finish strong to support crush margins. On the July chart trade is just below the 10-day at $10.43 with the overnight weakness with the next level of support the 100-day at $10.27. WHEAT Wheat trade is 4 to 14 cents lower at midday with the recent pattern of weaker overnight trade continuing, with trade trying to firm off the early lows yet again. The Kansas wheat tour wrapped up with a final average of 37.0 BPA and the project smallest crop since 1989. The dollar rally will likely continue to limit upside, with the index at 92.7. Warmer weather should help to boost maturity with the crop still well behind normal, with further stress likely if not combined with rain, especially for the western edge of the plains. Spring wheat growing areas look more open but have plenty of ground to cover to catch up. The Black Sea area will continue to dominate export trade with spring weather not triggering any major excitement thus far with warm dry start, but a wetter nearby forecast. Black Sea values are moving back towards $205 a ton. On the July Kansas City contract support is the 20-day at $5.27 support after we moved through it this last week, with resistance the $5.70 area of the fresh highs. 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.