DTN Midday Grain Comments 05/25 11:34

DTN Midday Grain Comments 05/25 11:34 All Grains Higher at Midday Big soybean gains at midday supporting corn and wheat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 150 points. The interest rate products are lower. The dollar index is 16 points lower. Energies are mostly higher with crude up 0.30. Livestock trade is mostly higher. Precious metals are mixed with gold down $6.00. CORN Corn trade is 4 to 6 cents higher at midday with trade finding buying again with support from stronger soybean trade and neutral to positive outside markets. Ethanol margins remain stable with energy values holding at the top of the range for the year with the ethanol/unleaded spread narrowing again. The weekly ethanol production report showed production down 0.21%, stocks were down 1.37%, and gasoline demand down 2.5%. Corn basis is expected to remain steady to firmer into midweek. Wet weather will slow planting progess but warmer temperatures should help development this week. On the July chart the 10-day at $3.95 is support with the 20-day at 3.88 the next level, with resistance at the $4.09 April high which is our six-month high. SOYBEANS Soybean trade is 16 to 24 cents higher at midday with trade finding buying once again overnight with the July contract leading again with renewed buying interest in meal. Meal is $16 to $17 higher and oil is 40 to 50 points higher. Meal buying interest has remained very resilant which has limited the ability of trade to hold set backs. Soybean planting will be slowed again by rains through midweek but warmer temperatures should benefit planted acres. On the chart, July trade is above the the 20-day at 10.54 with the 50-day at $9.85 the next round support if weakness resurfaces. The 10-day is resistance at 10.72, which he have moved through at midday. WHEAT Wheat trade is mixed across the three contracts at midday with spillover support from the row crops adding support, with potential damage from severe storms over much of Kansas last night. The strong dollar and tepid demand continue to limit buying enthusisasm. World weather remains good with only isolated areas of concern, with warmer weather to help boost maturity in the winter wheat belt with more severe weather possible. Feed wheat looks to remain competitively priced. The July Kansas City 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.