DTN Midday Grain Comments 05/06 11:30

DTN Midday Grain Comments 05/06 11:30 All Grains Higher at Midday Trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat, with the Dow down 2. The interest rate products are mixed. The dollar index was 10 points lower. Energies are higher with crude up 0.60. Livestock trade is mixed. Precious metals are mixed with gold up $4. CORN Corn trade is 3 to 5 cents higher at midday following the strength in the soybean pit, along with some light short covering after holding support yesterday. Weather gives us a few planting delays but warmer weather should boost the already planted acres in the near term. Ethanol margins remain fairly stable this morning with crude remaining in the upper end of the year range. The USDA announced 132,000 metric tons of corn sold to Israel. Basis has started to stabilize and firm near some processors. On the July chart resistance is at the $3.81 20-day then the $3.86 1/2 200-day with the 50-day at $3.72 nearby support. Monthly USDA numbers are due out next Tuesday, expected so show heavy supply side items. SOYBEANS Soybean trade is 17 to 24 cents higher at midday with moving sharply higher after early weakness with widespread buying returing. Meal is $8 to $9 higher and oil is 45 to 55 points higher. The trend has turned back higher this morning with trade moving back above the the 10-day moving average at $10.25, with the 20-day at 10.01 now support. Resistance is the weekly high at $10.57. Warm weather should allow soybean planting to increase into the weekend. Increased acres from corn could become more of a factor due to our recent price rise. WHEAT Wheat trade is 2 to 4 cents higher across the three contracts at midday with trade following the lead of the row crops. The dollar rally has stalled which helps add support this morning. The Kansas wheat tour pegged production at 384.2 million bushels in Kansas, well ahead of the last USDA projections at 316 million. Supplies are big, but prices are low, so the risk reward in shorts in case of some weather issue favors the long side versus new shorts at the new contract lows made this morning. World weather remains fairly benign, although the Canadian prairie has been pretty dry this spring. The July Kansas City chart has resistance at the $4.73 20-day with support at the recent and contract lows printed this morning at $4.50 1/2. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.