DTN Midday Grain Comments 05/25 11:51

DTN Midday Grain Comments 05/25 11:51 Grains Mixed at Midday Trade is mixed with soybeans down, wheat up and corn near flat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 85. The interest rate products are mixed. The dollar index is 5 points lower. Energies are lower with crude down 0.95. Livestock trade is mixed. Precious metals are higher with gold $2.60 lower. CORN Corn trade is flat to 2 cents lower at midday with spillover pressure from soybeans this morning. Crop weather will be the main market driver moving forward, so some light weather premium ahead of the holiday weekend may make sense today and Friday, with more action expected after the noon updates. Near-term weather conditions keep the east soggy, and the north and west drier. Ethanol margins are mixed this morning with futures moving higher despite the weaker energy complex. The weekly export sales were disappointing at 457,200 metric tons of old crop, 500 of new crop, and 115,400 metric tons of old crop were announced as sold to unknown on the daily wire. 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 5 to 8 cents lower at midday with early strength giving way to fresh lows on midday selling. Meal is $1 to $2 lower and oil is 10 to 20 points lower. Weather is not perfect, but it is nothing for the market to be excited about, so most expect range-bound trade to continue into the holiday weekend. But more long liquidation may pick up going into the weekend. Basis is steady to firm with the weaker futures of recent days. The weekly export sales were good seasonally at 427,700 metric tons of old crop, 6,000 of new, 125,000 metric tons of old crop meal, 34,900 of new crop, and 10,000 of oil. July beans have support at the longer-term low of $9.40, with the weekly low of $9.41 just above that, with resistance at 10-day moving average of $9.58. WHEAT Wheat trade is mixed at midday with trade chopping around unchanged after early strength failed to hold. Early southern winter wheat harvest notes have been lower yields and protein than expected so far, but we are still a ways from significant harvest activity with bigger expansion expected next week. World weather will continue to gain importance with concerns about wet weather in Canada and dry pockets elsewhere with the Dakotas now moving into drought conditions. The dollar continues to drift at the lower end of the range. Weekly export sales were OK at 201,900 metric tons of old crop, and 342,900 metric tons of new crop. On the July KC contract support is the recent low at $4.21, with the 10-day at $4.31 just below the market with the 50-day at $4.38 the next round up from there if trade continues to firm. 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.