DTN Midday Grain Comments 05/31 11:30

DTN Midday Grain Comments 05/31 11:30 Grains Trending Lower at Midday Trade is weaker with concern about trade with Mexico and calmer near term weather for some. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow 200 lower. The dollar index is 20 lower. Interest rate products are weaker. Energies are weaker with crude 1.50 lower. Livestock trade is mixed. Precious metals are mixed with gold 11.50 higher. CORN Corn trade is 4 to 6 cents lower at midday with concerns about trade issues with Mexico along with potential progress for some of the Belt in the near term with user margins compressing. Wet weather will linger in the short term, but warmer drier weather looks possible for more areas in the week ahead, with the rains concentrating south and east. The ethanol margins are steady this morning with ethanol futures holding at $1.53. Basis has seen selling pressure from farmer movement and the higher board, but yield uncertainty and acreage uncertainty have bullish control of the market here at midday. The US export competitiveness is limited at the moment but the weekly sales were decent at 906,800 metric tons of old crop at 76,500 metric tons. On the July nearby chart support is the $4.05 1/2 10-day moving average then the upper Bollinger Band at 4.34 and the recent high at $4.38 as resistance. SOYBEANS Soybean trade is 1 to 3 cents lower with trade working to defend acres with the planting delays vs. corn along with trade concerns. Meal is 1.50 to 2.50 lower and oil is narrowly mixed. Crush margins remain solidly positive overall with meal pushing back above $320 this week. South American currencies remain cheap at the end of harvest, with the export wire quiet for the US. Field work should generally remain slow today but more progress is likely into next week. The higher price of corn is pulling soybean prices higher along with fears of high prevent plant acreage. The price is pushing for acres to shift to corn or milo when possible but late plantings may still force beans as the better alternative. The weekly export sales were at 455,800 metric tons of old crop, 22,000 of new, 183,800 of new meal, 65,000 of old meal, and 35,100 of oil, inline with recent weeks. The July chart support is the 50-day at 8.72, and resistance the 100-day at 9.02 1/2. WHEAT Wheat trade is 6 cents lower to 1 cent higher with the higher protein wheats holding up better at midday with heavy rains expected to continue for Kansas. Europe and the Black Sea area will be watched with dryness in the Volga Valley hotter 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 and a delayed harvest. The dollar has dropped this morning. Hard red wheat is working into feed rations in some areas with the bounce in corn values. Export sales continued the recent trend with sales of 153,000 metric tons of old crop, and 411,800 of new. On the July KC chart support is the 10-day at 4.45, and the 100-day at 4.59, with the next round up the $4.83 recent high. 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.