DTN Midday Grain Comments 05/14 11:27

DTN Midday Grain Comments 05/14 11:27 Grains Mixed at Midday Soybeans are the midday leader, with corn flat and wheat softer. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow up 135 points. The interest rate products are higher. The dollar index is 10 points lower. Energies are firmer with crude up 0.30. Livestock trade is mixed. Precious metals are softer with gold down 1.70. CORN Corn trade is flat to 1 cent lower at midday with trade grinding back towards the lower end of the range with wetter weather across much of the belt this week. Wet weather is expected over the next week with generally warm conditions. The weekly export inspections were solid at 1.554 million metric tons. The second-crop areas of Brazil should catch some showers to mitigate some stress but the crop size will likely keep trending lower. Ethanol margins remain stable with corn and ethanol futures drifting higher this morning. Weekly crop progress should show planting pace back to average or better with emergence near normal. On the July chart we are just below the 20-day at $3.97 with the next level of support is 50-day at 3.94 which we tested overnight. SOYBEANS Soybean trade is 13 to 16 cents higher at midday with find stronger buying on trade optimism during the day session. Meal is $5 to $6 higher and oil is 10 to 20 points higher. The recent pattern in South America should remain intact near term, with the real and peso remaining near record lows to boost export competiveness, with harvest moving towards the home stretch with heavy rains causing some quality issues in Argentina. Weekly crop progress is expected to show planting remaining ahead of the normal pace along with emergence. The weekly export inspections improved at 688,195 metric tons. On the July chart, trade is just above the 200-day at $10.16 with the next level of support the psychological support at $10.00, while the 100-day at $10.27 is resistance. WHEAT Wheat trade is 2 to 6 cents lower overnight with trade setting up for a test of $5.00 on nearby Kansas City wheat as selling continues with better moisture expected for the Plains, although it's getting late to change the crop materially. The dollar rally is fading but remains elevated vs. where we have been most of the spring. Warmer weather should help to boost maturity with the crop still well behind normal, with further stress likely if not combined with rain. Spring wheat growing areas look more open to catch up, especially with the warmer temps. The Black Sea area will continue to dominate export trade with weather issues limited for the moment. Black Sea values are moving back towards $199 a ton. Weekly crop progress is expected to show steady conditions, and maturity showing some catchup vs. average. Spring wheat planting will remain behind normal, but emergence should be catching up. Weekly export inspections were 404,180 metric tons. On the July Kansas City contract support is the 100-day at $5.01 support, with resistance the $5.21 area of the 50-day moving average. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.