DTN Midday Grain Comments 04/28 11:44
Corn, Soy Lower at Midday
Row crops are weaker at midday with wheat mixed.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are lower with the Dow futures 30 points
lower. The interest rate products are mostly lower. The dollar index is
narrowly mixed. Energies are mixed with crude up $0.20. Livestock trade is
mixed. Precious metals are mixed with gold up 3.20.
Corn trade is 4 to 5 cents lower at midday with selling picking up during
the day session with the extended forecast looking drier. The weather forecast
is still expected to bring heavy rains into the middle of the belt this weekend
before more seasonable weather returns. Ethanol margins are stable overnight
with futures down slightly along with the corn. Corn basis has remained steady
with a firm tone this week; with significant deliveries overnight. The July
chart support is the recent low at $3.61 with resistance clustered at $3.69.
Soybean trade is 3 to 4 cents lower overnight with trade continuing to grind
around the recent range with spillover pressure from corn. Meal is flat to $1
lower and oil is 25 to 35 points lower. Wet weather moving forward should be
viewed as negative for beans since it could add acreage coming forward with
corn gaining this week. Basis has remained fairly steady in the near term with
trade rolling to the July as the May contract goes into delivery. Strong
movement is expected to continue from South America in the near term. July
soybean chart support is recent low at $9.49, with resistance the 20-day at
Wheat trade is mixed with KC and Minneapolis leading with trade trying to
close out strong gains for the week with the cold and weather weather concerns
adding premium ahead of the beginning of the Kansas crop tour. Heavy rains
could raise disease concerns further in much of the winter wheat belt with a
cold snap through the weekend potentially damaging heading wheat, although
temps mostly stayed above freezing last night. The dollar is just below the 99
level on the index. On the July KC contract support is at the 20-day at $4.31
with resistance the 50-day at $4.51 with the positive momentum heading into the
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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