DTN Midday Grain Comments 05/30 13:45

DTN Midday Grain Comments 05/30 13:45 All Grains Lower at Midday Trade is lower across the board at midday amid better weather forecasts. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow up 215 points. The interest rate products are higher. The dollar index is 70 points lower. Energies are firmer with crude up 1.60. Livestock trade is higher. Precious metals are mixed with gold up 2.60. CORN Corn trade is 6 to 9 cents lower at midday with trade seeing fresh selling with the better than expected initial condition report and wetter forecast. Warm weather should dominate the week, with rain coverage looking more comprehensive, 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 better this morning with ethanol futures sharply lower today while oil rebounds. Weekly crop progress showed 92% planted 2% ahead of average, 72% emerged, 3% ahead of average, and 79% good to excellent, vs. 72% expected, with only 3% poor to very poor. On the July chart we failed to hold the $4.00 area and the 50-day at $3.95 became resistance with the 100-day at 3.88 becoming support. SOYBEANS Soybean trade is 10 to 14 cents lower at midday with trade working lower with expected progress towards strike relief in South America and better weather in the US. Meal is 5.00 to $6.00 lower and oil is 15 to 25 points higher. Crush margins have narrowed but remain positive, with meal consolidating around the $380-385 area but failed to extend gains yesterday. Basis has remained steady, with trade likely to remain quiet in the near term. Weekly crop progress had 77% planted, 15% ahead of normal, and emergence at 47% emerged, also 15% ahead of normal. On the July chart, trade slipped below the 20-day at $10.23, with the next support the 200-day at 10.17 which we are just above. WHEAT Wheat trade is 14 to 18 cents lower at midday with selling returning with row crops adding pressure and the supply overhang and dollar rally hanging over the market, even with the sharp pull back today. Warmer weather should help to boost maturity with the crop still behind normal, with another batch of storms working across western Kansas the last two days, 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. Weekly conditions were improved to 38% good to excellent, and 34% poor to very poor, with 73% headed, vs. 75% on average. Export inspections were steady at 431,239 metric tons. Black Sea values are at $209.25 a ton. On the July KC contract support is the 20-day at 5.38, with the upper Bollinger Band at 5.73. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.