DTN Midday Grain Comments 05/23 11:37

DTN Midday Grain Comments 05/23 11:37 All Grains Lower at Midday Trade is lower 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 30. The interest rate products are lower. The dollar index is narrowly mixed. Energies are mixed with crude up 0.25. Livestock trade is mixed. Precious metals are mixed with gold $1.60 lower. CORN Corn trade is 3 cents lower at midday with trade continuing to grind around the recent trading range. The market focus is on near term weather forecasts. Soggy conditions are expected to continue this week in much of the belt, with some improvement in extended forecasts. Ethanol margins are stable, but have narrowed in recent days. The weekly crop progress showed planting progress at 84%, same as last year, and 1% behind average with emergence at 54% versus 58% last year and 55% on average. Illinois improved 9% on good to excellent ratings to 51%, and Iowa started at 75% good to excellent. The trade took the news Monday afternoon as uneventful. On the July chart support is at the 20-day at $3.70. Resistance is at the May $3.79 high. SOYBEANS Soybean trade is 3 to 5 cents lower at midday with trade continuing to chop in the lower end of the recent range with some light two sided trade early on. Meal is $1 to $2 lower and oil is 20 to 30 points lower. Trade will need to digest the increased movement from South America on the slide in the Brazilian currency, although it has stabilized somewhat to start the week. U.S. basis should stay steady for the moment with slower movement and the USDA announced 126,000 metric tons of old crop soybeans sold to unknown. The weekly crop progress has planting progress at 53%, same as last year, and 1% ahead of average, with emergence at 19% emerged, 1% behind last year, and 2% behind average. 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 1 to 5 cents lower at midday with trade seeing some selling after the light improvement noted on the weekly numbers. Early harvest has been lower yields and protein than expected so far but we are still a ways from significant harvest pressure, with the protein spreads bouncing around this morning. The dollar is back to the lowest levels since the election with trade just below 97 on the index. Crop progress showed winter wheat conditions at 52% good to excellent, and 17% poor to very poor, 1% better, with heading at 72% versus 74% last year and 67% on average. Spring wheat planting was at 90% planted, 4% behind last year but 6% above average with emergence at 62%, 13% behind last year, and 3% ahead of average. Soft wheat conditions slipped more which has spread trade shifting that direction early in the week. On the July Kansas City contract support is the 10-day at $4.33, which we are just below at midday with 50-day at 4.39 resistance, which we failed to hold above Monday. 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.