DTN Midday Grain Comments 05/08 11:28

DTN Midday Grain Comments 05/08 11:28 All Grains Lower at Midday Early gains give way to soft trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow 15 points higher. The interest rate products are weaker. The dollar index is 12 lower. Energies are firmer with crude up $0.80. Livestock trade is weaker in choppy trade. Precious metals are mixed with gold down $1.90. CORN Corn trade is 3 to 4 cents lower at midday with early gains turning into selling in the day session with little fresh news to move the market. Rains will still fall in the near term, but a drier stretch should move in behind this system for a little bit. The weekly ethanol report showed production 12,000 barrels per day higher with stocks down 227,000 barrels with ethanol futures flat post report. Basis will be choppy with river disruptions, and mixed demand, along with slow movement by farmers. The USDA monthly report is expected to show the large carryovers on Friday, including the new balance sheet for 2019-20; this may be limiting upside here at midday. On the July nearby chart support is the recent low at $3.52 with trade fading back below the 10-day and 20-day moving average at $3.65, with the 50-day at $3.73 1/2. SOYBEANS Soybean trade is 1 to 3 cents lower with trade still working to confirm a short-term low amid the ongoing trade uncertainty. Meal is flat to $1.00 lower and oil is 10 to 20 points lower. Crush margins should still be positive in the near term, but remain well off the recent highs. South American currencies remain cheap at the end of harvest, with ral remaining just off the lows. Field work should generally remain slow in the near term. Trade talks are still scheduled for Thursday and Friday, with positive trade optimism seemingly fading again overnight. The July chart support is the fresh low at $8.17, with resistance the 10-day moving average at $8.48. WHEAT Wheat trade is flat to 2 cents lower in quiet midday trade with wheat still looking to consolidate gains through resistance and encourage more profit taking with little fresh news. Europe and the Black Sea area will be watched more as their growing season keeps moving with mixed to good conditions so far and spring wheat seeding on going. The U.S. high Plains look for the eastern portions with the west edging drier, and disease concerns rising, while the north should see better progress on the late planting. The dollar has drifted back to the lower end of the range. On the July Kansas City chart support the fresh lows at $3.90 1/2, with the lower Bollinger Band at $3.89, and resistance the 10-day at $4.02 5/8 which we are just above at midday, with the 20-day the next round up at $4.14 7/8. 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 2019 DTN/The Progressive Farmer. All rights reserved.