DTN Midday Grain Comments 05/07 11:02

DTN Midday Grain Comments 05/07 11:02 All Grains Higher at Midday Corn is 5 to 6 cents higher, soybeans are 13 to 14 cents higher, and wheat is 6 to 8 cents higher. David Fiala,DTN Contributing Analyst The U.S. stock market is firmer with the Dow 350 points higher. The dollar index is 15 higher. Interest rate products are higher. Energies are firmer with crude $1.90 higher. Livestock trade is mixed with cattle leading. Precious metals are higher with gold up $18.00. CORN Corn trade is 5 to 6 cents higher at midday with broad commodity strength this a.m. with ideas of improvements in the state of trade relations along with China purchasing 686,000 metric tons of corn split between old and new crop on the daily wire. The ethanol margins remain stable with futures consolidating above $1.00 this week, with firmer unleaded action as well as travel demand improves. Weather should remain a non-issue for now with planters rolling in many areas still, with many done with corn. Basis faded to end last week with sideways action likely to continue. Weekly export sales were a little softer at 774,600 metric tons of old crop, and 97,500 of new. On the July contract, support is continuous chart low at 3.00 1/2, and resistance the 20-day at 3.22. SOYBEANS Soybean trade is 13 to 15 cents higher at midday with trade optimism carrying action despite new lows scored by the Brazilian ral. Meal is $0.50 to $1.50 higher and oil is 45 to 55 points higher. South America continues to move along harvest wise with strong shipments out of Brazil likely to continue after a record April. Continued planting progress is likely in most areas. Weekly export sales were mixed at 653,100 metric tons old crop, and 177,500 metric tons of new. The July soybean chart support is the lower Bollinger band at $8.24, with resistance the 20-day at $8.44. WHEAT Wheat trade is 6 to 8 cents higher at midday with support from the broad buying this a.m., along with the cold shot coming for the Chicago wheat. The western Plains will continue to look to see how the crop recovers from the April freezes, along with Europe and Russia progress with the near-term showers. Kansas City is at a 42-cent discount to Chicago on the July with steady action overnight, while Minneapolis has widened back out to a dime. The dollar is above 100 on the index with the strong start to the week. Weekly export sales were range bound at 244,800 metric tons of old crop, and 135,300 of new crop. The July Kansas City chart support is the lower Bollinger Band at $4.71, with resistance the 20-day at $4.88. 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 (c) Copyright 2020 DTN, LLC. All rights reserved.