DTN Midday Grain Comments 05/13 11:57

DTN Midday Grain Comments 05/13 11:57 All Grains Lower at Midday Corn is 2 to 3 cents lower, soybeans are 10 to 12 cents lower, and wheat is 8 to 12 cents lower. David Fiala,DTN Contributing Analyst GENERAL COMMENTS The U.S. stock market is lower with the Dow 300 points lower. The dollar index is 20 higher. Interest rate products are firmer. Energies are mostly lower with crude $0.20 lower. Livestock trade is sharply lower. Precious metals are mixed with gold up $15.00. CORN Corn trade is 2 to 3 cents lower at midday with rangebound action continuing post report with spillover pressure from wheat and beans. The ethanol weekly report showed production up 19,000 barrels per day, with stocks down 1.44 million on the week, keeping futures supported. Warmer weather should return later this week with rain expected for much of the belt. Basis has been stable in recent days. On the WASDE report, old-crop carryout 2.098 billion vs. 2.261 billion bushels expected, with new crop at 3.318 billion vs. 3.420 billion expected with slight cuts to last year's production, and world numbers edging higher. On the July contract, support is the lower Bollinger Band at $3.08, and resistance the 20-day at 3.19, which we are just above at midday. SOYBEANS Soybean trade is 10 to 12 cents lower with currency disadvantages along with broad commodity weakness overshadowing 396,000 metric tons announced sold to China. Meal is $1.00 to $2.00 lower and oil is 20 to 30 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. The WASDE report showed old crop carryout at 580 million bushels vs. 497 million expected, with new crop at 405 mb vs. 440 mb expected with world numbers little changed. The July soybean chart support is the 20-day at $8.43 which we are just below at midday, and resistance the upper Bollinger Band at $8.57, which we remain just below. WHEAT Wheat trade is 8 to 12 cents at midday with trade testing the lower end of the range after bigger numbers than expected on the report, while weather remains mixed. Russia and Europe look to have mostly average rainfall near term with Russian production estimates being cut on early dryness but stabilizing. Kansas City is at a 45-cent discount to Chicago on the July with slightly wider action to start the week, while Minneapolis is back to a 12 cent premium. The WASDE report showed old crop carryout at 978 million vs. 969 million bushels expected, and new crop at 909 million vs 818 expected, with all wheat production at 1.866 billion vs. 1.847 expected, and winter wheat at 1.255 billion vs. 1.245 billion expected. The July Kansas City chart support is the lower Bollinger Band at $4.67 which we are below at midday, 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.