DTN Midday Grain Comments 04/17 11:02
Grains Higher at Midday
Wheat, corn and soybean futures are higher at midday.
By David Fiala
DTN Contributing Analyst
U.S. stock market indices are sharply lower with Dow down 260 points.
Interest rate products are higher. The dollar index is 25 points higher.
Energies are mixed with crude down $.50. Livestock trade is mixed. Precious
metals are mixed with gold up $6.
Corn futures are 2 to 4 cents higher after softer trade overnight. There has
been some light commercial buying going into the weekend. Planting weather will
become more of a driver in the near term, with delays in the Southeast expected
to remain. Ethanol margins remain fairly stable with oil holding near the upper
end of the range. Some corn acres in the Southeast may be on the verge of
shifting to soybeans. December corn has moved back over the $4.00 area at
midday, which should hold acres in corn. On the chart, the recent May low at
$3.67 is support; resistance is at the 10-day and 20-day moving average around
$3.78 to $3.82, which we have stayed below.
Soybean futures are 2 to 5 cents higher at midday with meal $2 to $3 higher
and oil flat to 10 points lower. Soymeal spreads have firmed at midday which is
helping support trade. Wet weather could always shift more acres to beans,
which should limit action on the November crop in the near term. On the chart,
May beans have support at the recent low at $9.44, with trade being fairly
oversold; resistance is the 10-day at $9.63, and the 20-day at $9.70 above
that, which we have been testing at midday.
Wheat futures are flat to 4 cents higher at midday with some light
profit-taking vs. shorts going into the weekend. There have been fairly
widespread rains overnight and into today in Kansas, but much of this has been
priced into the market. Additional rains may fall over the next week, but
freeze damage remains a wild card, and the Monday conditions report will be
watched closely. The Black Sea area is generally in good shape, but acre
reductions on spring wheat should be monitored, especially if weather
conditions shift. The May KC contract has resistance at the 10-day moving
average at $5.39; support at the recent lows around $5.05.
David Fiala is a DTN contributing analyst and the president of FuturesOne
and a registered Trading Adviser.
David Fiala can be reached at firstname.lastname@example.org
Follow David Fiala on Twitter @davidfiala
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