DTN Midday Grain Comments 06/01 11:18

DTN Midday Grain Comments 06/01 11:18 All Grains Higher at Midday Trade is higher across the board at midday with mild upside momentum. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 30 points. The interest rate products are mixed. The dollar index is 40 points lower. Energies are mostly higher with crude down 0.20. Livestock trade is mixed. Precious metals are lower with gold down $5.40. CORN Corn trade is 5 to 7 cents higher at midday with trade turning higher following early weakness. Chart buying showed up around support levels and noted rising South American prices appear to be offsetting good US conditions and weather. Weather is opening up for the Western Corn Belt this week with temperatures warming more in the extended forecast with the Eastern Belt expected to follow suit later in the week. This will help finish up planting and be good for crop development. Ethanol margins remain stable with ethanol and unleaded up at midday with crude slightly lower. Outside markets are fairly neutral. The weekly crop progress report showed planting at 94%, same as last year, and 2% ahead of normal. Emergence was at 78% versus 81% last year and 75% on average. Initial conditions were 72% good to excellent, and 4% poor to very poor which is very good for a first rating but down from 74% good to excellent last year. On the July chart the 10-day at $4.01 is support with the 20-day at 3.92 the next level. Resistance is at the $4.13 1/2 seven-month high printed last Thursday; this is within striking distance at midday. SOYBEANS Soybean trade is 7 to 15 cents higher at midday with trade reversing higher during the day session with bull spreading returning along with fund buying. Meal is flat to $1 lower with 50 to 60 points higher. Meal is around $20 off the recent highs and struggling. Planting should be able to progress this week with weather opening up the second half of the week with warmer temperatures boosting growth. Prices remain very strong in South America which should help U.S. export demand. Planting progress came in at 73%, 5 percentage points ahead of last year, and 7 percentage points ahead of normal. On the July soybean chart the 10.98 high printed Thursday which was the highest level in 2015 or 2016 is chart resistance which we are near at midday. Support is at $10.74, the 10-day moving average then the 20-day at $10.64. WHEAT Wheat trade is 8 to 10 cents higher at midday due to spillover support from row crop trade and the weaker dollar. Winter wheat should see some preharvest pressure with maturity advancing rapidly with the more open weather but the weakness yesterday appeared to price in negative news. 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 in the extended forecast. The weekly crop progress report had winter wheat 1 percentage points better at 63% good to excellent, 8% poor to very poor, with 84% headed, 9 percentage points ahead of average. Spring wheat was 79% good to excellent, and 2% poor to very poor, up 3 percentage points on the week, with 88% emerged, 22% above average. The July Kansas City contract is back above the 10-day and 20-day moving averages, both at $4.52, at midday which are the lowest major moving averages with the 50-day at $4.67 above it. 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.