DTN Midday Grain Comments 05/22 11:27

DTN Midday Grain Comments 05/22 11:27 All Grains Higher at Midday Wheat leads trade higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow down 10 points. The interest rate products are firmer. The dollar index is 10 points lower. Energies are firmer with crude up 0.40. Livestock trade is mostly lower. Precious metals are firmer with gold up 1.00. CORN Corn trade is 2 to 4 cents higher at midday with trade finding fresh buying as we move back towards the contract highs with support from weather and trade optimism. Warm weather should dominate the week, with near-term rains looking to miss wider swaths of the belt. The second crop areas of Brazil are trending back drier in the near term. Ethanol margins remain stable with the energy complex near the upper end of the range, with Memorial Day demand just around the corner, and futures edging back to $1.52 gallon. The weekly crop progress report showed planting at 81% complete, same as average, and 50% emerged, 3 percentage points ahead of average. On the July chart we moved back above the 20-day at $3.99 1/2 with the next level of support is 50-day at 3.94 which we tested to start the week, with resistance at the recent high at $4.08. SOYBEANS Soybean trade is 2 to 4 cents higher at midday, with trade working to consolidate the gains from yesterday while South American supplies limit upside for now. Meal is 1.50 to 2.50 lower and oil is 20 to 30 points higher. South America's recent pattern should remain intact near term, with the Real and Peso remaining near record lows to boost export competiveness, with harvest moving towards the home stretch in Argentina with quality concerns remaining. Crush margins have narrowed but remain positive, with meal struggling to rally again here today. Weekly crop progress reflected the fast early pace with soybeans 56% planted, vs. 44% on average, and 26% emerged vs. 15% on average. On the July chart, trade is back just above the 200-day at $10.16 with the next level of support the recent low at $9.93, and the 20-day at 10.26 the next level of resistance, which we are just above at midday with the 50-day at $10.38 the next round up. WHEAT Wheat trade is 15 to 22 cents higher at midday reversing the losses from Monday with the weaker dollar and drier forecast for the Plains. Warmer weather should help to boost maturity with the crop still behind normal, but catching up with another week of heat likely to add stress to the heading crop. Spring wheat should see better progress with warmer weather helping to catch up emergence. The Black Sea area will continue to dominate export trade with weather issues limited for the moment but some dryness so far with concerns starting to build. Black Sea values are at $202 a ton. Weekly crop progress had conditions unchanged on good to excellent at 36% with poor to very poor 1 percentage point lower at 35%, with 61% headed vs. 74% on average. Spring wheat was 79% planted, 1 percentage point behind average, with emerged at 37%, 15% behind average. On the July Kansas City contract support is the 20-day at 5.33, with the upper Bollinger Band at 5.65. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.