DTN Midday Grain Comments 05/11 10:56

DTN Midday Grain Comments 05/11 10:56 Grains Mixed at Midday Corn is 1 to 2 cents lower, soybeans are 5 to 6 cents higher, and wheat is 4 cents lower to 3 higher. David Fiala,DTN Contributing Analyst The U.S. stock market is weaker with the Dow 150 points lower. The dollar index is 50 higher. Interest rate products are weaker. Energies are firmer with crude $0.50 higher. Livestock trade is lower. Precious metals are weaker with gold down $15.00. CORN Corn trade is 1 to 2 cents lower at midday as early strength faded during the day session yet again. The ethanol margins remain stable with futures consolidating above $1.00, and getting nearer to $1.10, while unleaded is just about back to $1.00 with demand edging higher with more reopening. Warmer weather should return later this week with rain expected for much of the belt. Basis has been stable in recent days. Weekly export inspections were strong at 1.334 million metric tons. Planting progress should remain well ahead of normal with emergence passing average this week. On Tuesday's WASDE report, old crop carryout is expected to rise to 2.261 billion bushels, with new crop at 3.420 billion. On the July contract support is the lower Bollinger band at $3.08, and resistance the 20-day at 3.20, which we are just above overnight. SOYBEANS Soybean trade is 5 to 6 cents higher at midday with concerns about early beans getting frosted along with trying to build on the momentum from last week. Meal is $1.00 to $2.00 higher and oil is 10 to 20 points lower. South America continues to move along harvest wise with strong shipments out of Brazil likely to continue after a record April along with the currency advantage with the ral remaining near the low. Weekly planting progress is likely to remain solidly above average along with emergence. Weekly export inspections were rangebound at 496,498 metric tons. The WASDE report is expected to show old crop carryout at 497 million bushes, and new crop at 440 million. The July soybean chart support is the 20-day at $8.43, and resistance the upper Bollinger Band at $8.57, which we are testing at midday. WHEAT Wheat trade is 4 cents lower to 3 cents higher with Minneapolis wheat leading midday with trade digesting the cold air from the weekend along with the evolving moisture forecast. Russia and Europe look to have mostly average rainfall near term. Kansas City is at a 42-cent discount to Chicago on the July with slightly wider action to start the week, while Minneapolis has narrowed back to 2 cents. The dollar is just above 100 on the index with the strong start to the week. Weekly export inspections were range bound at 340,310 metric tons. Weekly crop progress will likely keep conditions mostly steady, with maturity slightly behind average still, and spring wheat planting still lagging. The WASDE report is expected to show wheat carryout at 969 million bushels on old crop, and 818 million on new on production of 1.847 billion bushels vs. 1.92 billion last year. The July Kansas City chart support is the lower Bollinger Band at $4.70, with resistance the 20-day at $4.86. 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.