DTN Midday Grain Comments 05/01 12:15

DTN Midday Grain Comments 05/01 12:15 Corn, Wheat Higher at Midday Wheat and corn are firmer at midday, soybeans flat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow futures down 255 points. The interest rate products are higher. The dollar index is 60 points higher. Energies are lower with crude down 0.90. Livestock trade is weaker for cattle, firmer for hogs. Precious metals are weaker with gold down 13.40. CORN Corn trade is 2 to 4 cents higher at midday with trade putting in new highs yet again. Significant planting progress should be made ahead of the midweek rains with warmer weather helping the early planted acres to emerge. The second-crop areas of Brazil look to remain on the dry side in the near term as well, which should continue to add support. Ethanol margins have narrowed with corn firming and ethanol futures slipping from the recent highs, holding at $1.43, along with momentum in the energy complex slowing. Weekly crop progress showed planting 17% complete, 10% below average, and 3% emerged vs. 6% on average. On the July chart we are above the 20-day at $3.92 which remains support, with the upper Bollinger Band at $4.02 resistance, which are edging above at midday. SOYBEANS Soybean trade is mixed at midday with trade struggling to find direction today. Meal is $7 to $8 higher and oil is 15 to 25 points lower. The recent pattern in South America should remain intact near term allowing for greater progress in Brazil harvesting, with the stronger dollar and cheaper real encouraging sales and export business. However, meal demand could be forced back to the U.S. with the Argentina meal shipping challenges with moving back through $400 a ton this morning, and heavy rains disrupting remaining harvest. Weekly crop progress had 5% planted, same as average. Trade is right at the 20-day at $10.49 with the next support at the 10-day at $10.44, with resistance the upper Bollinger Band at $10.72. WHEAT Wheat trade is 5 to 15 cents higher at midday with trade shaking off the overnight lows as the wheat tour has found stressed wheat so far. The dollar rally will likely continue to limit upside, but yields will be the focus this week. Warmer weather should help to boost maturity with the crop still well behind normal. Spring wheat growing areas look more open but have plenty of ground to cover to catch up. The Black Sea area will continue to dominate export trade with spring weather not triggering any major excitement thus far with a nearby warmer and drier trend. Black Sea values are moving back towards $200. Weekly crop progress showed conditions up 2 percentage points at 33% good to excellent, and 37% poor to very poor, and 19% headed vs. 30% on average for winter wheat, and spring wheat 10% planted vs. 36% on average. On the July Kansas City contract support is the 50-day at $5.15 support after we moved through it this last week, with resistance the upper Bollinger Band at $5.46, which we are above at midday. 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.