DTN Midday Grain Comments 05/02 11:15

DTN Midday Grain Comments 05/02 11:15 Wheat Higher at Midday Soybeans wash to fresh lows, dragging corn and wheat off their early highs again today. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 210 points lower. The interest rate products are firmer. The dollar index is 10 higher. Energies are weaker with crude down 2.35. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold down 12.20. CORN Corn trade is flat to 1 cent lower with trade fading with pressure from soybeans, and the weather forecast adding support. 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 with more focus on coming updates. Ethanol margins have narrowed with the pull back in the energy complex, with ethanol futures slightly higher today. Basis will be choppy with river disruptions, and mixed demand, along with slow movement by farmers. South American harvest should continue to move along toward completion with cheap export offers, especially from Argentina. Weekly export sales were soft at 586,500 metric tons of old crop, and 209,500 of new. On the July nearby chart, support is the 20-day at $3.66 1/4 which we pushed above today, with the 10-day at $3.62 3/4 below that, while the 50-day at $3.75 is the next round up. SOYBEANS Soybean trade is 8 to 10 cents lower with heavy selling returning during the day trade once again as fresh lows are scored with fresh bullish news remaining absent. Meal is 2.50 to 3.50 lower and oil is 30 to 40 points lower. Crush margins are fading with July meal falling below $300 again. South American currencies remain cheap at the end of harvest, with real remaining just off the lows. The daily export wire has been quiet in recent days, raising concerns but there has been more positive trade chatter still lacking in confirmation. The weekly export sales remained poor at 313,400 metric tons of old crop, 23,500 of new, 79,200 metric tons of old meal, 16,500 of new, with 7,300 of oil. The July chart, support is the fresh low at $8.42, with resistance the 10-day moving average at $8.69. WHEAT Wheat trade is 2 to 8 cents higher at midday with trade working to extend the gains seen yesterday with fund selling mostly absent for far today, with Minneapolis and Chicago contracts leading the Kansas City. Europe and the Black Sea area will be watched more as their growing season keeps moving with mixed to good conditions so far and spring wheat seeding on going. The US 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, with a muted rebound after the Fed statement yesterday. The winter wheat tour has found good potential so far, with the crop running behind normal maturity wise. Weekly export sales were disappointing at 122,100 metric tons of old crop, and 297,400 of new crop. 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 $4.08. 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.