DTN Midday Grain Comments 05/20 10:58

DTN Midday Grain Comments 05/20 10:58 All Grains Trading Lower at Midday Early gains have given way to lower trade at midday. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are higher with the DOW futures up 130 points. Interest rate products are higher. The dollar index is 9 points higher. Energies are narrowly mixed. Livestock trade is lower. Precious metals are mixed with gold down $3.50. CORN Corn futures are narrowly mixed at midday with trade giving back early strength as soybeans turn lower. Planting and early crop development weather look to improve for the weekend, before rains and warmer temps show up at the beginning of next week. Ethanol margins remain stable with energy values holding at the top of the range for the year. Corn basis has been steady to a bit softer through midweek due to the price rise and farmer movement during the rain delays. USDA announced 125,000 metric tons of old crop sold to Colombia. On the July chart the 200-day and 20-day moving averages are support at $3.85 which we are just above at midday. Resistance is at the $4.09 April high which is our 6-month high. SOYBEANS Soybean futures are 3 to 9 lower at midday with early strength fading and meal moving lower after very strong buying overnight. Meal is $6 to $7 higher and oil is 45 to 55 points lower with crush strength fading. Meal has been the main driver this week, and the strength going into the weekend will be watched closely. Soybean planting should accelerate this weekend ahead of pending rains next week, with acre switching encouraged by the current price spread. Resistance on July beans is at the $10.91 high reached last week then $11. Support is at the $10.69 10-day which we have edged below at midday then the $10.49 20-day. WHEAT Wheat futures are 1 to 3 lower at midday with trade finding some spillover from the row crops this morning. The dollar rally seems to be fading a bit but is in the high side of the recent range, adding further limits to buying enthusiasm this morning. World weather is good with only isolated areas of concern, and better moisture for much of the dry Canadian Prairie in the forecast which will aid in seeding. 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 U.S. export picture remains bleak which will continue to be a wet blanket for the bulls. The July KC chart is trading just below the 10-day at $4.51, making support the low at $4.41. 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.