DTN Midday Grain Comments 05/31 11:22

DTN Midday Grain Comments 05/31 11:22 Corn, Wheat Higher at Midday Corn is the leader at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 35. The interest rate products are mixed. The dollar index is 30 points lower. Energies are lower with crude down 1.80. Livestock trade is higher. Precious metals are mixed with gold $3.90 higher. CORN Corn trade is 8 cents higher at midday with trade rebounding off the poor start to the week due to lower than expected crop ratings and some chart buying. Forecasts remain mixed with the east looking wetter and the northern plains looking drier. Ethanol margins are under pressure with corn higher. Crude oil is lower on OPEC production increases, but the dollar is lower as well helping offset some of the negative outside market influence. The weekly crop progress number yesterday afternoon had planting at 91% complete, 2% behind average with emergence at 73%, 2% behind average. The crop ratings were at 65% good to excellent, and 7% poor to very poor, which was a 2-4% below expectations and 7% year ago numbers. On the July chart, trade is back above the $3.70 area, which is support, where the major moving averages are clustered with the upper Bollinger band just above the market at $3.76 3/4 which is first support. SOYBEANS Soybean trade is mixed at midday with trade once again trying to find broader footing with the recent heavy selling as the market deals with demand concerns, and fears of increased acres. Meal is flat to $1 higher, and oil is flat to 10 points lower. July has gained on spread trade this morning. Palm oil prices have slid recently adding pressure along with the lack of action on the biodiesel front by the US government. The weekly crop progress showed plantings at 67%, 1% behind averages, and 4% behind last year, with emergence at 37% 5% behind last year, and 3% behind average. July beans have new support at $9.10 which is the fresh low, then $9.00, with resistance at 10-day moving average of $9.42. WHEAT Wheat trade is 2 to 5 cents higher at midday with trade finding support after a decline in conditions and trade being able to firm off the early week lows yesterday. Early yields remain on the light side with protein improving with a big expansion likely this week, although rains could interfere more as we move north. World weather will continue to gain importance with concerns about wet weather in western Canada and dry pockets elsewhere with the Dakota's now moving into drought conditions, with the morning forecasts scaling back the Dakota rain. The dollar continues to drift at the lower end of the range and is testing the lows this morning. The weekly winter wheat conditions should conditions 2% lower to 50% good to excellent, and 15% poor to very poor, with heading at 80% headed, 3% lower than last year, but 3% above average. Spring wheat conditions were 62% good to excellent, and 6% poor to very poor, and 79% emerged, 7% behind last year, but 5% above average. On the July Kansas City contract support is the 10-day at $4.31 which we are testing this morning, and the 20-day resistance at $4.37 which we tested overnight. 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.