DTN Midday Grain Comments     04/13 10:56

   Grain Futures Higher Midday Tuesday

   Corn is 12 to 13 cents higher, soybeans is 9 to 11 cents higher and wheat is 
5 to 10 cents higher.

David M. Fiala
DTN Contributing Analyst

   MARKET SUMMARY:

   The U.S. stock market is mixed with the Dow down 85 points. The dollar index 
is 0.17 lower. Interest rate products are mostly higher. Energies are firmer 
with crude up $0.40. Livestock trade is mixed. Precious metals are firmer with 
gold up $10.00.

   CORN:

   Corn trade is 12 to 13 cents higher at midday with firmer spread action as 
trade works to rebound from the soft start to the week as early field work 
slows in coming days and demand remains stout nearby. Ethanol margins should 
remain rang- bound with driving demand likely to remain near normal levels 
short term, with corn values limiting upside along with sideways action in the 
energy complex. Corn basis continues to hold firm throughout the belt. 
Double-crop progress in Brazil looks to have mixed weather for most, with early 
growth seeming to be OK for now and the start of the dry season fast 
approaching. Weekly crop progress showed planting progress at 4% versus 3% last 
year and on the five-year average. On the May contract chart resistance is the 
contract high at $5.95, with the upper Bollinger Band at $5.78 3/4 now just 
below the market, then the 20-day at $5.57 as support.

   SOYBEANS:

   Soybeans are 9 to 11 cents higher at midday with trade working to regain 
momentum after the poor start to the week, with oil attempting to lead the 
recovery Tuesday morning after broad selling on reduced biodiesel demand 
Monday. Meal is $6.00 to $7.00 lower and oil is 1.70 to 1.80 cents higher. 
South America is expected to continue harvest progress in Brazil with little 
overall weather change short term and Argentina looking stable short term. 
Planting progress was not reported yet with only the early birds going. The May 
soybean chart has resistance the 20-day at $14.08, with support the lower 
Bollinger Band at $13.77, which we have held.

   WHEAT:

   Wheat trade is 5 to 7 cents higher with trade trying to regain momentum 
after the soft start to the week, and with rain for the Plains and steady 
conditions not adding fresh bullish inputs short term. The downtrend in the 
dollar should help to limit downside while feeding wheat becomes more 
attractive versus corn. Weather in the Plains has some cold in it as well, but 
not enough to get the market excited right now with weekly crop progress 
showing good to excellent and poor to very poor unchanged at 53% good to 
excellent, and 17% poor to very poor, with 5% headed versus 7% on the five-year 
average. KC has narrowed back to a 48-cent discount to Chicago with Minneapolis 
15 cents above Chicago. KC May on the chart has support at the 20-day at $5.76 
that we held Tuesday, with $6.00 the next level of resistance.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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