DTN Midday Grain Comments 05/12 11:06

DTN Midday Grain Comments 05/12 11:06 Grains Trending Lower at Midday Corn is 2 to 3 cents lower, soybeans are flat to 1 cent lower, and wheat is flat to 4 cents lower. David Fiala,DTN Contributing Analyst The U.S. stock market is firmer with the Dow 60 points higher. The dollar index is 45 lower. Interest rate products are firmer. Energies are mixed with crude $1.10 higher. Livestock trade is mostly higher. Precious metals are mixed with gold up $16.00. CORN Corn trade is 2 to 3 cents lower at midday with rangebound action ongoing ahead of the report at 11:00 and little other fresh news so far. The ethanol margins remain stable with futures working above $1.10 while unleaded closes in on a buck. Warmer weather should return later this week with rain expected for much of the belt. Basis has been stable in recent days. Planting progress came in at 67%, just below expectations but over the 5-year average at 56%, with 24% emerged vs. 22% on average. On the 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 3.19. SOYBEANS Soybean trade is 1 to 2 cents lower at midday with trade still grinding along, but still unable to secure the bigger breakout with announced sales to China still not generating excitement. Meal is $0.50 to $1.50 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 even with the dollar pullback. Weekly planting progress was 38%, just below expected but 15% above average, with 7% emerged vs. 4% on average. 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 remain just below. WHEAT Wheat trade is flat to 5 cents lower at midday with Minneapolis trade holding up the best so far as trade looks to chop around going to the report. Russia and Europe look to have mostly average rainfall near term with Russian production estimates being cut on early dryness. Kansas City is at a 42-cent discount to Chicago on the July with slightly wider action to start the week, while Minneapolis is back to a 5-cent premium. Weekly crop progress showed winter wheat down 2% to 53% good to excellent, and 16% poor to very poor, with 44% headed vs. 50% on average, and spring wheat 42% planted vs. 63% on average, and 16% emerged vs. 23% on average. 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 $4.67, with resistance the 20-day at $4.85. 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.