DTN Midday Grain Comments 05/31 11:18

DTN Midday Grain Comments 05/31 11:18 Wheat Leading Grains Lower at Midday Trade is lower across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures down 65 points. The interest rate products are lower. The dollar index is 30 points higher. Energies are mostly higher with crude up 0.55. Livestock trade is higher. Precious metals are lower with gold down $0.40. CORN Corn trade is 4 to 6 cents lower at midday. Lower trade is noted due to spillover pressure from wheat and soybeans along with better weather forecasts and lackluster export inspections. Weather looks to be more clear this this week which should allow for better crop development going into June and finishing up some late plantings. Some acres may be switched to beans. Ethanol margins remain stable to start the week with usage likely to rise for summer. The weekly export inspections were disappointing at 786,407 metric tons. The weekly crop progress report is expected to show planting progress near complete, with emergence ahead of normal, and intial crop conditions very good overall. On the July chart the 10-day at $4.01 is support with the 20-day at 3.91 the next level, with resistance at the $4.13 1/4 7-month high prninted last Thursday. SOYBEANS Soybean trade is a penny lower on November to 6 cents lower on July at midday with early gains giving way. Some profit taking by bull spreaders is pressureing the front months. Meal is $2 to $3 lower and oil is 35 to 45 points higher. Planting should be able to progress this week with weather opening up the second half of the week. Prices remain very strong in South America which should help U.S. export demand with the USDA announcing old-crop sales of 213,000 metric tons. Planting progress should be around normal levels, and weekly exports inspections were low at 204,303 metric tons. On the July soybean chart the 10.98 2015-2016 high printed Thursday is chart resistance with $10.75, the 10-day moving average, first support then the 20-day at $10.62. WHEAT Wheat trade is 6 to 14 cents lower at midday across the three markets with Chicago leading the weakness. Improved conditions with southern winter wehat harvest just around the corner is noted for the pressure. The dollar is a bit stronger, which is limiting gains as well. World weather remains good with only isolated areas of concern, and drier weather expected to get harvest going soon on the Southern Plains. The dry Prairies of Canada received some rain but the forecast trends warmer and drier again. The weekly crop progress report should show a slight decline in conditions with above normal maturity and growth. The weekly export inspections improved a bit at 494,842 metric tons. The July Kansas City contract is back below the 10-day and 20-day moving averages, both at $4.52, at midday which are the lowest major moving averages that are now resistance. Next is the $4.68 50-day with major support 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.