DTN Midday Grain Comments 05/26 11:04
Grains Mixed at Midday
Corn is 1 to 2 cents higher, soybeans are 10 to 12 cents higher, and wheat
is 2 cents lower to 2 cents higher.
David Fiala,DTN Contributing Analyst
The U.S. stock market is firmer with the Dow 615 points higher. The dollar
index is 88 lower. Interest rate products are weaker. Energies are firmer with
crude $0.60 higher. Livestock trade is firmer. Precious metals are mixed with
gold down $28.00.
Corn trade is 1 to 2 cents higher at midday with trade finding light buying
to open the week with rains still moving through parts of the belt and
supportive outside markets with the dollar sharply lower. Ethanol margins
remain stable with more plants coming back online with demand improvements
needing to be sustained with signs of a plateau in recent days with ethanol and
unleaded futures firmer this a.m. Wetter weather will persist in some areas
into midweek before a warm up is expected. Weekly export inspections were solid
at 1.091 million metric tons, with weekly crop progress showing planting near
90%, and emergence just behind average. On the July contract support is the
20-day at $3.18 which we are tested and held, and the upper Bollinger Band at
$3.23 as resistance.
Soybean trade is 10 to 12 cents higher with trade finding support from
further easing of harvest pressure and currency gains this AM. Meal is .50 to
1.50 higher and oil is 55 to 65 points higher. China secured 246,000 metric
tons of beans, and unknown bought 216,000 metric tons of meal. South America
continues to move along harvest wise with strong shipments out of Brazil likely
to continue unless port issues redevelop, with the real at multi-week highs
which crimps local prices a bit. Crush margins remain solid as well. Weekly
export inspections were soft at 333,127 metric tons, with planting progress
remaining just ahead of average. The July soybean chart support is the lower
Bollinger Band at $8.27, with resistance the 20-day at $8.42 which we have
edged above at midday.
Wheat trade is 2 cents lower to 3 cents higher with improved short term US
weather, and little change overseas, with support from the weaker dollar so
far. Russia looks to have mostly average rainfall near term with France and
Germany drier near term. KC is at a 62-cent discount to Chicago on the July
with slightly narrower action so far, while Minneapolis is back to a 9 cent
premium. Weekly export inspections were rangebound at 457,777 metric tons.
Weekly crop progress should show steady winter wheat conditions with maturity
still lagging a touch, while spring wheat planting will remain well behind
normal. The July KC chart support is the lower Bollinger band at $4.33 which we
tested last week before bouncing with resistance the 20-day at 4.66.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
(c) Copyright 2020 DTN, LLC. All rights reserved.
No other Daily email offers as much useful Ag information as DTN Snapshot – Sign up