DTN Midday Grain Comments 04/27 10:45

DTN Midday Grain Comments 04/27 10:45 May Corn Shooting Higher at Midday Corn trade is 20 to 22 higher on May at midday, with back months 5 to 7 cents higher, soybeans are narrowly mixed and wheat is 3 to 14 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is soft with the Dow down 30 points. The U.S. Dollar Index is 0.10 higher. Interest rate products are weaker. Energies are firmer with crude up $0.45. Livestock trade is mixed with cattle leading. Precious metals are flat with gold up $1.00. CORN: Corn trade hit 40 cents higher overnight on the May contract before fading to 20- to 22-cent higher on the May contract, with the back months seeing two-sided trade during the day session after strong overnight action. Ethanol margins will be pressured by corn values while ethanol values remain elevated with energies and demand holding at the upper end of the recent range. The warmer weather will have planters rolling in many areas with rains to follow in many areas; likely pushing us back ahead of average this week, with planting progress at 17% versus 20% on average, with 3% emerged versus 4% on average, while South America continues to worry on the double-crop corn ahead of pollination with the hole in the Brazilian forecast still there. Corn basis continues to hold firm throughout the belt. On the May contract, chart resistance is the new contract high at $7.20 with support the gap at $6.80. SOYBEANS: Soybeans is narrowly mixed at midday, fading from the strong overnight following the corn and wheat action, with oil values continuing to lead crush. Meal is $1.00 to $2.00 lower and oil is 2.00 cents to 2.50 cents higher. The pre-delivery period for May will keep trade volatile this week. The cool weather should fade near term, allowing for better progress to be made in the field with planting progress pulling ahead of average at 8% complete versus 5% on average. South American harvest will continue to wrap up in Brazil in the near term while shipping continues and selling still slow from Argentina. On the May soybean chart, support is $15.00 with resistance at the fresh high of $16.08. WHEAT: Wheat trade is 3 to 14 cents higher scoring fresh highs yet again with KC wheat action leading as world values move higher on supply concerns and the cheap dollar, but trade has faded substantially from the 30- to 35-cent higher overnight action. More seasonal temps should return to wheat growing areas in the short term as we assess last week's freeze impact. The downtrend in the dollar is supportive for exports with trade remaining near the lows. KC has narrowed back to a 33-cent discount to Chicago with Minneapolis now 1 cent above Chicago. Winter wheat conditions declined 4% to 49% good to excellent, 19% poor to very poor and 17% headed versus 20% on average with spring wheat 28% planted versus 19% on average, and emerged 7% planted versus 5% on average. KC May on the chart has support at the 50-day at $6.07, with resistance the fresh high scored at $7.34. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.