DTN Midday Grain Comments 04/11 11:46

DTN Midday Grain Comments 04/11 11:46 Grain Trade Mixed at Midday Soybeans trade is firm, corn and wheat softer at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 160 points. The interest rate products are lower. The dollar index is 18 points lower. Energies are firmer with crude up $1.60. Livestock trade is firmer. Precious metals are flat to higher with gold up 21.00. CORN Corn trade is flat to 2 cents lower at midday with trade remaining range bound after no major surprises on the report yesterday. Early fieldwork and planting looks to expand for the southern part of the belt with warmer temperatures, while the north remains slow. On the WASDE report yesterday, domestic carryout was 2.182 billion bushels up 55 from last month, and 10 million below the average guess. World stocks were 197.8 million metric tons, down 1.4 from last month, and .8 above the average guess. Brazil production was 92 million vs. 94.5 last month, and Argentina was 33 million vs. 36 last month. Weekly ethanol production was down slightly with stocks down 2.46%. On the May chart we are back above the 20-day at $3.82 5/8 which is support with resistance the recent highs of $3.92 1/2 then the $3.95 1/4 8-month high. SOYBEANS Soybean trade is 3 to 6 cents higher at midday with trade looking to push higher again after failing to hold the post report push higher yesterday, with more export sales surfacing. Meal is flat to $1 higher and oil is 10 to 20 points lower. The recent pattern in South America should remain intact near term allowing for greater progress in Brazil. Trade will be looking for signs of additional acres, especially with a slow start to planting in the Dakotas on spring wheat and the slow start to corn. USDA announced export sales of 120,000, and 141,815 to Argentina and Mexico for the new crop year. On the report, domestic carryout was 550 million bushels, down 5 from last month, and 20 million below expectations, world stocks were 90.8 vs. 92.9 expected and 94.4 last months. Brazil production was pegged at 115 million metric tons, vs. 115.6 expected, and 113 in March, and Argentina at 40 million vs. 42.3 expected at 47.0 last month. On the May contract, trade is back above the 20-day at $10.33 with resistance the post report high at $10.68 to start the week. WHEAT Wheat trade is flat to 6 cents lower at midday with trade drifting lower after failing to extend gains post report with the weather pattern little changed. The slow progress likely limits damage from the cold snap due to slow jointing. Warmer weather for the Black Sea and Continental Europe should help to support growth there, with their price advantage growing on the world market. The WASDE report had domestic carryout at 1.064 billion bushels, up 30 million from last month, and 24 above the average guess, with world stocks up to 271.2 million metric tons vs. 268.9. On the May Kansas City contract support is at the 50-day at $4.96 with trade with the upper Bollinger band at 5.32 the next level of resistance. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.