DTN Midday Grain Comments 05/12 11:19

DTN Midday Grain Comments 05/12 11:19 Soybeans Lower at Midday Corn and wheat higher at midday, while soybeans give back early gains. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower, with the Dow futures down 35. The interest rate products are higher. The dollar index is 18 points higher. Energies are lower with crude down $0.30. Livestock trade is mostly higher. Precious metals are lower with gold down $5. CORN Corn trade is 3 to 5 cents higher at midday with trade hanging together despite the reversal in the soybean trade. US weather looks cooler and wetter in the near term which should be mildly supportive with slower planting and growth. Brazil remains fairly dry in the near term. Basis has been fairly stable this week and should hold together pretty well. Ethanol margins remain fairly stable today with ethanol and unleaded hanging together in the upper end of the range. Weekly export sales were solid at 1.14 million metric tons of old crop, and 150,400 of new crop. The USDA also announced 210,000 metric tons of corn sold to Saudi Arabia. On the July chart we are just below the $3.83 20-day, the 200-day at $3.85 1/2 is the highest major moving average. Support is now at the $3.74 100-day. SOYBEANS Soybean trade is 10 to 15 cents lower at midday with trade shedding early gains with a sharp break in soyoil prices leading trade lower. Meal is $1 to $2 lower and oil is 80 to 90 points lower. The Chinese market has seen a substantial rally in meal values, helping to pressure oil. The weekly export sales were softer at 212,400 metric tons of old-crop soybeans, 6,900 of new, 115,300 of meal, and 16,700 of oil. Resistance on July beans is at the $10.91 high post report, then $11. Support is at the $10.46 10-day then the $10.25 20-day, giving trade a pretty wide range between support and resistance. WHEAT Wheat trade is 2 to 4 cents higher across the three contracts at midday with trade following the lead of corn. The dollar failed to hold the rally this morning, adding a bit of support. World weather for wheat remains mostly non-threatening for the moment. The weekly export sales were mixed at 294,400 metric tons of old crop, and 387,900 of new crop. The July Kansas City chart has resistance at the $4.59 10-day with support limited due to our downside momentum that has only been stopped by spillover support from the row crops this week. 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.