DTN Midday Grain Comments 05/03 11:31

DTN Midday Grain Comments 05/03 11:31 Corn, Wheat Higher at Midday Wheat leads with strength at midday providing spillover support to corn, beans seeing spread selling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 330 points. The interest rate products are lower. The dollar index is 10 points higher. Energies are lower with crude down 0.20. Livestock trade is sharply higher. Precious metals are firmer with gold up 8.80. CORN Corn trade is 1 to 2 cents higher with trade firming during the day session with trade putting in another new high for the move; we have done so each day this week. These are fresh 10-month highs. Rains will slow planting through the middle of the week, but warm weather will boost what is in the ground with drier weather expected to follow. 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 margins have been steady today with ethanol futures advance with the corn at the high end of the range, along with distillers' grains values adding support. The weekly export sales were good at 1.02 million metric tons. On the July chart we are above the 20-day at $3.95 which remains support, with resistance the fresh high at $4.06 3/4 scored this morning. SOYBEANS Soybean trade is 3 to 6 cents lower with trade drifting lower during the day session after initial lightly firmer trade; some selling beans versus corn is noted. Meal is $2 to $3 lower and oil is narrowly mixed. 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. Meal is just below $400 a ton with the early weakness, with a close below this level likely bringing in more selling. The weekly export sales were mixed at 416,300 metric tons of old crop, 469,900 of new crop, 210,300 of old crop meal, 246,000 of new crop meal, and 44,500 of soy oil. The USDA also announced 30,000 metric tons of soyoil sold to Peru on the daily wire. On the July chart trade is just below the 10-day at $10.43 with the next level of support the 100-day at $10.27. WHEAT Wheat trade is 2 to 5 cents higher at midday with trade seeing overnight weakness again with rains in much of Kansas and the wheat tour ongoing before finding strength during the day session yet again. 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 with rain, especially for the western edge of the plains. 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 $204 a ton. The weekly export sales were OK at 248,300 metric tons of old crop, and 210,300 of new. On the July Kansas City contract support is the 20-day at $5.25 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.