DTN Midday Grain Comments 05/03 11:21

DTN Midday Grain Comments 05/03 11:21 Grains Mixed at Midday Soybeans are the midday leader in mixed quiet trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 125 points higher. The interest rate products are weaker. The dollar index is 30 lower. Energies are firmer with crude up 0.55. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold up 10.60. CORN Corn trade is 1 to 2 cents lower with trade giving back early gains to test support before firming back towards flat heading towards the week. 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 with hope of midmonth improvement. Ethanol margins have narrowed with the pull back in the energy complex, with ethanol futures remaining rangebound. Basis will be choppy with river disruptions, and mixed demand, along with slow movement by farmers. On the July nearby chart, support is the 20-day at $3.66 which we tested this a.m., with the 10-day at $3.63 below that, while the 50-day at $3.74 1/2 is the next round up. SOYBEANS Soybean trade is 1 to 3 cents higher at midday with trade seeing quiet trade so far, with no big selling push as of yet. Meal is 1.00 to 2.00 higher and oil is flat to 10 points lower. Crush margins are fading with July meal falling below $300. 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, with South America moving soybeans at a brisk pace, but we did see Mexico buy 293,922 metric tons. The July chart support is the fresh low at $8.41 3/4, with resistance the 10-day moving average at $8.63. WHEAT Wheat trade is 5 to 8 cents lower at midday with trade pulling back from the early gains overnight with fund selling again during the day session after two positive days. 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 U.S. high Plains look wet for Oklahoma and Texas along with central and eastern Kansas, and the north likely to see some mixed progress with potentially more open weather again near term. The dollar has turned back lower again today. The winter wheat tour wrapped up with strong yield expectations, but that was no surpise. On the July Kansas City chart, support the fresh lows at $3.90 1/2, with the lower Bollinger Band at $3.89, and resistance the 10-day at $4.06 3/4. 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.