DTN Midday Grain Comments 05/01 11:06

DTN Midday Grain Comments 05/01 11:06 Grains Mixed at Midday Soybeans wash to fresh lows, dragging corn and wheat off their early highs. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 65 points higher. The interest rate products are weaker. The dollar index is 20 lower. Energies are weaker with crude down 0.80. Livestock trade is firmer with hogs locked limit higher. Precious metals are weaker with gold down 2.20. CORN Corn trade is flat to 1 cent higher with spillover pressure from soybeans pulling trade back from 4 cents higher early in the session. July is now the front month with the May contract in delivery. It the forecast significant rains are expected to fall the next few days for much of the Belt with the first part of May above normal moisture wise for most likely slowing fieldwork again with more flooding along the Mississippi. The weekly ethanol report showed production down 24,000 barrels a day, and stocks down 52,000 barrels with ethanol futures a penny lower. Basis has been broadly firmer for many end-users with fieldwork being the biggest focus for producers and buyers moving to July bids. South American harvest should continue to move along toward completion with cheap export offers, especially from Argentina. On the July nearby chart support is the low at $3.51 1/2, with the 10-day at $3.62 nearby resistance which we are trying to consolidate above and then the 20-day at $3.65 which we tested this morning. SOYBEANS Soybean trade is 7 to 9 cents lower with fund selling continuing to persist amid oversold conditions and little fresh news, especially with nothing exciting on the trade front. Meal is $1.50 to $2.50 lower and oil is 20 to 30 points lower. Crush margins are fading with July meal falling below $300. South American currencies remain cheap at the end of harvest, but the real has started to narrow the gap this week. The daily export wire has been quiet in recent days, raising concerns. The July chart support is the fresh low at $8.45 1/4, with resistance the 10-day moving average at $8.73. WHEAT Wheat trade is 2 to 5 cents higher at midday with the overnight buying continuing during the day session although fading as soybeans turn lower. Europe and the Black Sea area will be watched more as their growing season keeps moving with mixed to good conditions so far and rain slated for Southern Russia. The U.S. high Plains look wet for Oklahoma and Texas along with eastern Kansas, and the north likely to see some mixed progress with potentially more open weather again near term. The dollar has pulled back from fresh highs but remains elevated. The winter wheat tour has found good potential so far, with the crop running behind normal maturity wise. On the July Kansas City chart, support the fresh lows at $3.90 1/2, with the lower Bollinger Band at $3.92, and resistance the 10-day at $4.11. 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 2019 DTN/The Progressive Farmer. All rights reserved.