DTN Midday Grain Comments 05/29 11:37

DTN Midday Grain Comments 05/29 11:37 Grains Trending Mixed at Midday Two-sided action to open the week, with wheat showing the most strength at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow down 370 points. The interest rate products are weaker. The dollar index is 60 points higher. Energies are weaker with crude down 1.40. Livestock trade is mixed. Precious metals are mixed with gold down 0.60. CORN Corn trade is flat to 1 cent lower at midday with trade giving back the early gains, but holding near the upper end of the range. Warm weather should dominate the week, with rain coverage looking mixed with the driest areas in the middle of the belt for now, with bigger potential to the east with leftovers of the Hurricane. The second-crop areas of Brazil have some better short-term rain. Ethanol blender margins are narrowing with the energy complex pulling back well of the recent highs, while corn remains elevated along with ethanol futures holding at $1.52. Weekly export inspections remained strong at 1.705 million metric tons. Weekly crop progress is expected to show planting progress near average, with emergence ahead of normal, with first conditions expected to reflect a crop in generally good shape to start. On the July chart we moved back above the 20-day at $4.03 with the next level of support is 50-day at 3.95 which we tested to start the week, with resistance at the fresh high at $4.12 1/4. SOYBEANS Soybean trade is narrowly mixed at midday with trade backing off the early test of the highs made on the open with support with support from early weather concerns and logistics issues in South America tied to the ongoing trucker strikes, while U.S. weather might show some improvement in the near term. Meal is 5.50 to $6.50 higher and oil is 20 to 30 points lower. Crush margins have narrowed but remain positive, with meal consolidating around the $380-385 area. Basis has remained steady, with trade likely to remain quiet into the weekend. Weekly crop progress is expected show planting remaining well ahead of normal. Weekly export inspections were ok at 576,046 metric tons. On the July chart, trade is just above the 50-day at $10.38, with the upper Bollinger Band at 10.64 the next level of resistance. WHEAT Wheat trade is mixed with trade with spring wheat down 4 to 6 cents, and winter wheat 3 to 7 cents higher with the stronger dollar proving headwinds, with weather concerns growing in Russia with spring wheat delays and drier weather in the Black Sea area along with continued concerns about U.S. production. Warmer weather should help to boost maturity with the crop still behind normal, with another batch of storms working across western Kansas, although it's getting late to do much. Spring wheat should see better progress with warmer weather helping to catch up emergence, with Canada remaining on the dry side. Conditions should be steady for winter wheat with maturity remains 8%-10% behind normal, with spring wheat planting wrapping up with emergence well behind normal. Export inspections were steady at 431,239 metric tons. Black Sea values are at $207.50 a ton. On the July Kansas City contract, support is the 20-day at 5.39, with the upper Bollinger Band at 5.76. 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.