DTN Midday Grain Comments 04/27 11:29
Grains Mixed at Midday
Wheat is firmer at midday with row crops mixed.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are lower with the Dow futures 20 points
lower. The interest rate products are mostly higher. The dollar index is 19
points higher. Energies are weaker with crude down $1.20. Livestock trade is
higher. Precious metals are mixed with gold up 2.00.
Corn trade is narrowly mixed at midday with trade waiting until the noon
forecast to get more excited. The weather forecast is expected to bring heavy
rains into the middle of the belt this week in the near term with the extended
forecast more mixed with significant GFS and Euro model disagreement overnight.
Ethanol margins are tighter with the setback in energies this morning. Corn
basis has remained steady with a firm tone this week; producers continue to
want to see higher prices. The weekly export sales were good at 987,000 metric
tons of old crop, and 11,100 of new. The July chart support is the recent low
at $3.61 with resistance clustered at $3.69.
Soybean trade is narrowly mixed at midday with trade trying to find better
footing after the selling yesterday with the weaker Brazilian real encouraging
broader farmer selling. Meal is flat to $1 higher and oil is 5 to 15 points
lower. Wet weather moving forward should be viewed as negative for beans since
it could add acreage coming forward with corn gaining this week. Basis has
remained fairly steady in the near term. The weekly export sales were good at
808,100 metric tons of old crop, 72,300 of new, 112,000 of meal, and -2,000 of
oil. July soybean chart support is recent low at $9.49, with resistance the
20-day at $9.58.
Wheat trade is flat to 5 cents higher across the three contracts at midday
with Kansas City and Minneapolis wheat leading. Further short covering could
accelerate with another positive finish today if the weather continues to be
threatening with cold air pushing south with parts of Kansas hitting the
mid-20's overnight. Heavy rains could raise disease concerns in much of the
winter wheat belt with a cold weather through the weekend. The dollar is just
above the 99 level on the index. The weekly export sales were soft at 61,700
metric tons of old crop, and 305,400 of new. On the July Kansas City contract
support is at the new low at $4.15 with resistance at the $4.25 10-day which we
have moved above overnight, with the 20-day at $4.30 area.
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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