DTN Midday Grain Comments 05/29 11:40

DTN Midday Grain Comments 05/29 11:40 Grains Mixed at Midday Wet weather pushes trade to new highs before setting back this morning in volatile trade. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 300 points lower. The interest rate products are weaker. The dollar index is 25 higher. Energies are weaker with crude 1.80 lower. Livestock trade is mixed. Precious metals are weaker with gold 3.50 higher. CORN Corn trade is 2 to 4 cents higher at midday with trade leaving another gap on the slower planting progress, and more short-term rains before pulling back sharply, trading 7 lower before bouncing back with trade looking to carve out a range. Wet weather is expected to remain in place for much of the western and central Corn Belt in the near term, with potential improvement on the horizon. Ethanol margins are negative with ethanol futures unable to keep pace with the corn rally with ethanol futures off slightly this morning. Basis has seen selling pressure from farmer movement. The weekly crop progress report showed planting at 58% vs. 90% on average, with emergence at 32% vs. 69% on average. On the July nearby chart support is the $4.00 area then the upper Bollinger band at $4.22 which is where we are at midday, 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 22 cents higher at midday with trade working to retain acres amid the weather concerns. Meal is $8.50 to $9.50 higher, and oil is 35 to 45 points higher. Crush margins remain solidly positive overall with meal pushing back to $320. South American currencies remain cheap at the end of harvest, with the export wire quiet for the U.S. 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 but soybeans have been able to gain a bit today. The weekly crop progress report showed planting at 29% vs. 66% on average, and emergence at 11% vs. 35%. The July chart support is the 50-day at 8.73, and resistance the 100-day at 9.03 5/8. WHEAT Wheat trade is 2 to 6 cents lower with Kansas City trade leading action with concerns about wet weather and spillover from corn pushing the market with weaker conditions and increasing volatility. 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 moved back into the upper 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 had winter wheat conditions at 61% good to excellent, and 9% poor to very poor, down 5%, with 66% headed vs. 76% on average. Spring wheat was 84% planted vs. 91% planted, and 47% emerged vs. 69% on average. The weekly export inspections were a bit lighter at 494,097 metric tons. On the July Kansas City chart, support is the 100-day at 4.60 which we are testing at midday, and the 200-day at 5.05 the next round up. 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.