DTN Midday Grain Comments 05/28 11:43

DTN Midday Grain Comments 05/28 11:43 Grains All Higher at Midday Wet weather pushes trade to new highs for corn, with broad buying on soybeans and wheat. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow 10 points lower. The interest rate products are weaker. The dollar index is 28 higher. Energies are flat to firmer with crude 0.30 higher. Livestock trade is lower led by hogs. Precious metals are weaker with gold 6.00 lower. CORN Corn trade is 11 to 12 cents higher at midday with trade leaving another gap higher with more support from the continued wet weather. Wet weather is expected to remain in place for much of the western and central Corn Belt in the near term, with potential improvement the second week. Ethanol margins are negative with ethanol futures unable to keep pace with the corn rally with ethanol futures up a nickel this morning. Basis has seen selling pressure from farmer movement. The weekly export inspections were strong at 1.098 million metric tons. The weekly crop progress report is expected to remain well behind normal, with emergence following suit. The forecasts should continue to guide trade with rains around in the forecasts to keep the market nervous about getting the last 40% of the crop planted. On the July nearby chart, support is the $4.00 area then the upper Bollinger Band at $4.09, resistance is hard to come by, the July 2019 contract high was reached on May 29 last year at $4.45. SOYBEANS Soybean trade is 18 to 20 cents higher at midday with trade following the lead of grains this morning. Meal is $8.00 to $9.00 higher, and oil is 25 to 35 points higher. Crush margins remain solidly positive overall with meal pushing back to $310. South American currencies remain cheap at the end of harvest, with the export wire quiet for the US. Field work should generally remain slow in the near term but more progress is likely into next week with little incentive for farmers to push right now along with acres possibly shifting to corn or milo when possible with the ratio remaining very narrow. Weekly export inspections were in line with recent weeks at 532,881 metric tons. The weekly crop progress report is expected to show planting progress well behind normal. The July chart support is the 10-day at $8.30 that we closed just above with the lower Bollinger band at $8.02, with the next round the upper Bollinger band at $8.56 the next level of resistance. WHEAT Wheat trade was 10 to 19 cents higher with Kansas City and Chicago trade leading action with concerns about wet weather and spillover from corn pushing the market. Europe and the Black Sea area will be watched with dryness in the Volga Valley expected to be eased in the near term and Russian potential remaining good overall, with spring wheat planting still catching up with disease issues in the winter wheat from wet weather. The dollar remains in the middle part of the range. Hard red wheat is working into feed rations in some areas with the bounce in corn values. The weekly crop progress report will likely show steady conditions with maturity still lagging, and spring wheat planting catching up closer to normal, but still behind. The weekly export inspections were a bit lighter at 494,097 metric tons. On the July Kansas City chart, support is the 50-day at $4.26 with the 100-day at $4.61 the next round up which we are testing at midday. 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 2019 DTN/The Progressive Farmer. All rights reserved.