DTN Grain Midday: Broad Selling Returns

©Debra L Ferguson Stock Photography

Fresh lows for grains with broad selling returning during the day session.

CORN

Corn trade is 2 to 3 cents lower at midday with fresh lows being scored as fund selling returned this morning after initially positive trade. The short-fund position is pushing towards 350,000 short with the action so far this week. The forecast should allow for better progress in much of the Belt this week with the north remaining slowest, and a potential wetter start to May for much of the belt.

The weekly ethanol report showed production 32,000 barrels a day higher, with stocks 71,000 barrels higher, which has ethanol futures 2 cents lower. Basis has been broadly firmer at many end-users with fieldwork being the biggest focus for producers. South American harvest should continue to move along toward completion with cheap export offers.

On the July nearby chart, support is the fresh low at $3.560, with the 10-day at $3.66 nearby resistance, and then the 20-day at $3.69.

SOYBEANS

Soybean trade is 2 to 3 cents lower at midday with overnight profit taking giving way to fresh selling again. Meal and oil is narrowly mixed. Crush margins have faded but remain solidly positive with meal still holding the $300 level.

South American currencies remain cheap as soybean harvest winds down. The daily export wire has been quiet in recent days along with trade news ahead of next weeks negotiations.

On the July chart, support is the fresh low at $8.70 3/4, with resistance the lower Bollinger Band at $8.79 3/4, and then the 10-day moving average at $8.98.

WHEAT

Wheat trade is 5 to 9 cents lower with Kansas City the weak leg this morning with fund selling returning late in the overnight session and carrying over into the day session. Europe and the Black Sea area will be watched more as their growing season keeps moving.

The U.S. high Plains look wet for Oklahoma and Texas along with eastern Kansas, and the north more open for progress in the next few days. The world export market has been quieter this week as well.

On the July Kansas City chart, support the fresh lows at $4.11, with the lower Bollinger Band at $4.15, and resistance the 10-day at $4.27.

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