DTN Midday Grain Comments 05/18 11:20

DTN Midday Grain Comments 05/18 11:20 Grains Mixed at Midday Markets are calm at midday with corn and wheat mixed and soybeans lower. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the DOW futures up 30 points. The interest rate products are firmer. The dollar index is 20 points higher. Energies are flat with crude narrowly mixed. Livestock trade is mixed. Precious metals are lower with gold down $4. CORN Corn trade is 1 to 2 cents higher at midday with chart buying and selling only showing up at new highs for the move. Weather looks more open for the balance of this week but wetter weather is expected to return next week. So we should be down to 10% area left to be planted by next week. The weekly ethanol production report showed production down 1.46%, stocks were down 0.70%, and gasoline demand was 1.0% higher. Ethanol and unleaded are up at midday. Corn basis has been steady to a bit softer through midweek due to the price rise and farmer movement. Additional farmer selling is expected on a scale up basis. At this juncture more will likely occur due to our higher chart trend and fund help. On the July chart the 200-day and 20-day moving averages are now at $3.85 which is chart support. Resistance is at the $4.07 April high, which is the six-month high. SOYBEANS Soybean trade is 5 to 8 cents lower at midday in slow trade following an actively mixed overnight and early morning. Meal is down $1 and bean oil down 10 points. The range has been from over 15 cents lower to nearly a dime higher. The high was within 3 cents of chart resistance. Outside markets are lightly supportive and limiting downside. Some talk of added soybean acreage is limiting upside. Soybean planting should accelerate this weekend ahead of pending rains next week. Resistance on July beans is at the $10.91 high reached last week then $11. Support is at the $10.59 10-day then the $10.42 20-day. WHEAT Wheat trade is narrowly mixed across the three contracts at midday with trade generally drifting sideways within Tuesday's range on most contracts. Market bulls remain hopeful since we are hanging onto the gains seen 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. Feed wheat is more competitive than it has been, which should help trade to find additional usage especially with the bump up in corn prices this month. The July Kansas City chart the $4.51 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.