DTN Midday Grain Comments 05/17 11:18

DTN Midday Grain Comments 05/17 11:18 All Grains Higher at Midday Beans are seeing double-digit gains at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 30 points. The interest rate products are firmer. The dollar index is 20 points lower. Energies are higher with crude up $0.55. Livestock trade is mixed. Precious metals are higher with gold up $7. CORN Corn trade is 3 cents higher at midday due to spillover support from beans and light chart buying. Fund buying and outside markets appeared to support corn yesterday down near the 20-day and 200-day moving average. AT midday we are pushing new daily highs which are new highs for May. Weather generally is favorable looking forward and crop progress is slightly ahead of normal which would project slightly better than trendline yields as a general expectation. Yesterday afternoon the crop progress was inline with expectations coming in at 75% planted versus the 70% 5-year average. Emergence was at 43% versus the 34% average. Traders are noting the trend is your friend this week. On the July chart the 200-day and 20-day moving averages are now at $3.84 3/4 which is chart support. The low yesterday was $3.86. Resistance is at the $4.07 1-month high. July corn is currently around 45 cents above the contract low printed after the bearish March acreage report and we are a dime below the spike high seen four weeks ago. SOYBEANS Soybean trade is 15 cents higher at midday, meal is up $7 and bena oil up 20 points with chart buying noted as funds add length. Some buying of beans and selling of corn seems to be spread trade back in play as well. The higher soybean prices in the big picture are viewed as adding a premium to the market with a more questionable supply and demand fundamental scenario domestically and globally following the USDA numbers last week which primarily raised usage. Expectations with this price increase though should be toward 1 or more million acres of beans being added onto the March number, which won't be seen until at the end of June on the June Planting Intention report. The weekly progress numbers listed planting at 36% completed versus the 32% 5-year average. Emergance was at 10% versus the 9% average, so we remain basicall on a normal planting pace. Colder weather has work slow this week so far but warmer temperatures as we move through the week have us set up for a good situation and good planting progress this weekend. Resistance on July beans is at the $10.91 high reached last week then $11. Support is at the $10.54 10-day then the $10.39 20-day. WHEAT Wheat trade is firm with short profit taking noted at midday. Minneapolis is a nickel higher at midday, Chicago up 8 and Kansas City up 9 cents. Kansas City is trying to make a move out of the down trend where fresh contract lows were printed last week. Spillover support from corn and beans, plus ideas the negative stuff is priced-in is limiting sellers so far this week. World weather is good with only isolated areas of concern. Wheat needs an export story to have more of the market place thinking friendly fundamentally. The growing global stocks of wheat give little hope for that to occur. On the progress report winter wheat was noted at 68% heading versus the 56% average. Spring wheat plantings were listed at 89% complete versus the 64% average with emergence at 60% veruss the 36% average. Winter wheat crop conditions were unchanged at 61% good to excellent. So nothing friendly from the weekly numbers. The July Kansas City chart the $4.52 10-day making it nearby support then the low at $4.41. Resistance is at the 20-day at $4.66. 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.