DTN Midday Grain Comments 05/02 11:53

DTN Midday Grain Comments 05/02 11:53 Grains Mixed at Midday We have narrowly mixed action at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 45 points. The interest rate products are higher. The dollar index is 17 points higher. Energies are mixed with crude up 0.10. Livestock trade is firmer. Precious metals are firmer with gold up 0.50. CORN Corn trade is narrowly mixed at midday with trade hanging near the fresh highs for the move scored this morning. Rains will slow planting through the middle of the week, but warm weather will boost what is in the ground. The second-crop areas of Brazil look to remain on the dry side in the near term as well, with should continue to add support. Ethanol futures continue to drift lower after the weekly report showed a 47,000-barrel-per-day increase in production, and stocks up 441,000 barrels. On the July chart we are above the 20-day at $3.92 which remains support, with resistance the fresh high at $4.06 coming into the day. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with trade drifting along the middle of the recent range so far today. Meal is narrowly mixed and oil is 30 to 40 points higher. The recent pattern in South America should remain intact near term allowing for greater progress in Brazil harvesting, with the stronger dollar and cheaper ral encouraging sales and export business. Meal remains over $400 a ton with the shipping and crushing concerns from Argentina. The export wire had been quiet so far this week. 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 flat to 5 cents higher with trade firming back from overnight weakness with the wheat tour continuing to find a battered crop. The dollar rally will likely continue to limit upside, with the index still at 92.4. Warmer weather should help to boost maturity with the crop still well behind normal, with further stress likely if not combined by rain. 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 $202 a ton. On the July Kansas City contract support is the 20-day at $5.23 support after we moved through it this last week, with resistance the $5.60 area of the fresh highs. 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.