DTN Midday Grain Comments 05/22 11:19

DTN Midday Grain Comments 05/22 11:19 All Grains Higher at Midday Trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 75. The interest rate products are lower. The dollar index is 15 lower. Energies are higher with crude up 0.45. Livestock trade is mostly higher led by cattle. Precious metals are higher with gold $6.20 higher. CORN Corn trade is 4 cents higher at midday with trade testing nearby resistance with follow-through buying after the strong finish last week. Soggy conditions for much of the belt are viewed as friendly to the market concerns about the start of the growing season. Ethanol margins mixed with the energy complex firming along with the corn with ethanol futures slightly higher this morning. Basis has remained steady to firm in the recent days. The weekly crop progress is expected to show planting near average, with emergence remaining below average, with current conditions in the "I" states remaining below normal. The weekly export inspections were good at 1.14 million metric tons of corn which has added support. On the July chart support is at $3.69, the 20-day then the $3.61 4-month low. Resistance is at the $3.74 100-day which we are above at midday, then the May high at $3.79. SOYBEANS Soybean trade is 6 cents higher at midday with trade continuing to find light buying after the hard selloff last week tied to Brazilian issues. Meal is $1 to $2 higher and oil is flat to 10 points higher. The Brazilian currency trade has calmed down, and retraced much of the losses, but the wave of bushels dumped must be digested, with real off slightly this so far today. US basis should stay steady for the moment with slower movement. The weekly crop progress is expected to show planting near normal with emergence slightly behind normal. The weekly export inspections were normal seasonally at 348,535 metric tons. Spillover support from corn and support from the wet weather is the main news that appears to have market bears gun-shy at midday. July beans have support at the longer term low of $9.40, with the weekly low of $9.42 just above that, with resistance at 10-day moving average of $9.64. WHEAT Wheat trade is 3 to 7 cents higher across the three contracts with wet conditions raising quality concerns, along with early harvest expanding in the south this week and the weaker dollar. Early harvest has been lower yields and protein than expected so far but we still a little ways from the broader opening of harvest. The dollar is back to the lowest levels since the election with trade just below 97 on the index. Crop progress is expected to show steady to lower conditions, with maturity above normal, while spring wheat planting and emergence remains close to normal. Weekly export inspections were ok at 674,559 metric tons. On the July KC contract support is the 10-day at $4.34 with 50-day at 4.39 resistance, which are above at midday. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.