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DTN Midday Grain Comments     05/07 10:46

   Soybeans Poised to Climb Higher Into Weekend

   Corn is 3 to 4 cents higher with new crop flat, soybeans are 8 to 10 cents 
higher with new crop 12 to 14 cents higher and wheat narrowly mixed.

David M. Fiala
DTN Contributing Analyst


   The U.S. stock market is firmer with the Dow up 140 points. The U.S. Dollar 
Index is 0.65 lower. Interest rate products are mixed. Energies are flat. 
Livestock trade is mostly higher with cattle leading. Precious metals are 
stronger with gold up $19.20.


   Corn trade is 3 to 4 cents higher upfront overnight, with new crop flat as 
spread trade is firmer. New crop came well off the overnight highs in choppy 
action. Ethanol margins will see pressure from corn values, but good driving 
demand and tight stocks will mostly offset that short term. Trade will continue 
to watch for rains to benefit the rapid early corn planting progress, with some 
key areas still short of moisture in the northern Corn Belt, while I-80 South 
looks to be in line for good rains. Brazil continues to struggle with dryness 
during pollination. Corn basis is holding firm throughout the belt. China 
bought 1.36 million metric tons of new-crop corn on the daily wire with unknown 
picking up 188,486 metric tons of old and new. On the July contract, chart 
resistance is the fresh contact high at $7.28 3/4 with support the recent low 
at $6.29 1/2.


   Soybeans are 8 to 10 cents higher up front, and 12 to 14 higher on new crop 
with two-sided trade Friday morning after strong buying overnight. Meal $3.50 
to $4.50 higher and oil is 0.40 cent to 0.50 cent higher with more balanced 
crush action than we've seen recently. Planters will continue to roll short 
term with some areas of rain slowing action, but we will remain well ahead of 
normal with northern areas still dry. South America should continue to see 
shipping progress short term, while domestic crush will have to carry the U.S. 
On the July soybean chart, support is the recent low at $14.90, with resistance 
the upper Bollinger Band at $16.10.


   Wheat trade is narrowly mixed at midday with trade struggling to hold gains 
despite the sharply lower dollar and flatter spillover from row crops. KC is at 
26-cent discount to Chicago with Minneapolis now 40 cents above Chicago with 
intramonth spreads mixed. Seasonal weather on the Plains should boost growth 
with dry concerns for spring wheat staying in place. Other Northern Hemisphere 
weather will continue to be watched as well with little fresh news on the 
front. KC July on the chart has support at the recent low of $6.86 3/4, and 
resistance the upper Bollinger Band at $7.61.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala

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