DTN Midday Grain Comments 05/31 11:17

DTN Midday Grain Comments 05/31 11:17 Wheat, Corn Higher at Midday Trade is mixed at midday in fairly quiet action. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow down 200 points. The interest rate products are mixed. The dollar index is narrowly mixed. Energies are mixed with crude down 0.60. Livestock trade is sharply lower. Precious metals are mixed with gold up 1.60. CORN Corn trade is 1 to 2 cents higher at midday with trade finding some light buying; the market is trying to rebuild support after the soft start to the week amid a fluid weather environment. Warm weather should dominate the week, with rain coverage shifting from model run to model run. The second crop areas of Brazil have some better short term rain. The weekly ethanol report showed production rebounding slightly, with stocks down 866,000 barrels on the week, helping to push ethanol futures higher post report. The weekly export sales are delayed until Friday because of the holiday week. On the July chart we are right below the 50-day at $3.96 at midday which is first resistance with the 100-day at 3.86 becoming support. Overhead resistance is the 20-day moving average at $4.01. This does appear to be a week where the 2018 weather market has surfaced; volatility has grown in option premium with normal market nervousness ahead of the next two very important growing weather months. SOYBEANS Soybean trade is 3 to 6 cents lower at midday with trade failing to hold the early strength yet again. Meal is $2 to $3 lower, and oil is 15 to 25 points lower. Crush margins have narrowed but remain positive, with meal consolidating around the $375-380 area with trade firming back off the early lows. Basis has remained steady, with trade likely to remain quiet in the near term. Strikes and turmoil continue in Brazil which we help to offset their cheaper currency. On the July chart, trade slipped below to the 20-day at $10.23, with the next support the 200-day at 10.17 which we are testing and further resistance the 50-day at 10.37. Major support is the 200-day with the May low at $9.92 3/4 the next notable support. WHEAT Wheat trade is flat to 5 cents higher at midday with two-sided trade with winter wheat trying to recover the momentum lost the last couple of days. Warmer weather should help to boost maturity with the crop still behind normal, with the southern plains drying out again the next seven days with early harvest likely to expand quickly the next two weeks. Spring wheat should see better progress with warmer weather helping to catch up emergence, with Canada remaining on the dry side, along with Ukraine trending drier. Black Sea values are at $207.00 a ton. On the July Kansas City contract support is the 20-day at 5.37, 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.