DTN Midday Grain Comments 05/26 11:09

DTN Midday Grain Comments 05/26 11:09 Grains are Mixed at Midday Volatile trade so far this morning with actively mixed midday net changes. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 25 points. The interest rate products are lower. The dollar index is 16 points lower. Energies are mostly mixed with crude up .05. Livestock trade is mostly higher. Precious metals are mixed with gold down $1.00. CORN Corn trade is flat to 2 cents higher at midday with two sided trade including reaching new seven-month highs. July futures put in a new high at $4.09 1/2 overnight on the July contract picking up a few stops above the previous $4.07 1/4 high then buying dried up. Lower soybean trade appears to be weighing on corn at midday. Ethanol margins remain stable with ethanol prices increasing with corn, July Ethanol futures are now a penny premium to unleaded which may limit upside in ethanol although Memorial Day weekend gasoline demand is expected to be solid. Wet weather will slow planting progess on the last 10% but warmer temperatures should help progress the rest of the week. The weekly export sales were good at 1.38 million metric tons of old crop, and 246,200 of new crop. The USDA also announced 130,000 metric tons sold to Taiwan and 123,000 sold to unknown. On the July chart the 10-day at $3.97 is support with the 20-day at 3.88 the next level, with resistance at the $4.09 1/2 overnight high. SOYBEANS Soybean trade is 4 to 8 cents lower at midday with trade backing away about 20 cents from the overnight highs. A new high was marked on the July contract at 10.98 with bull spreading favoring then fading during the day session. Meal is $4 to $5 higher with oil 30 to 40 points lower. Meal buying interest has remained very active helping to erase set backs this morning. Volatile trade is likely to continue to the weekend. Soybean planting will be slowed again by rains through midweek but warmer temperatures should benefit planting activity in the week ahead, as well as the portion of the crop in the ground. Weekly export sales were decent at 456,800 metric tons of old crop, 150,000 of new crop, 169,500 of meal, and 32,900 of oil. On the July soybean chart the 10.98 overnight high is now resistance, with $10.72, the 10-day moving average as first support. WHEAT Wheat trade is 5 to 10 cents higher at midday with support from corn, the weaker dollar, and storm damage across the plains with potential for more. Wheat export sales remain lackluster with -9,900 metric tons on old crop, and 354,400 of new crop. The dollar rally is fading a bit which should add some additional support if it is a pattern reversal. 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. The July Kansas City contract is back above the $4.51 10-day at midday, as well as the $4.55 20-day. Major support remains at the $4.41 contract low. 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.