DTN Midday Grain Comments 05/21 10:52

DTN Midday Grain Comments 05/21 10:52 Grains Mixed at Midday Corn futures are 1 to 2 cents lower, soybean futures are 8 to 10 cents lower and wheat futures are 3 cents lower to 3 cents higher. David Fiala,DTN Contributing Analyst MARKET SUMMARY The U.S. stock market is weaker with the Dow 130 points lower. The U.S. Dollar Index is 35 higher. Interest rate products are mixed. Energies are mixed with crude .10 lower. Livestock trade is mixed. Precious metals are weaker with gold down 30.00. CORN Corn futures are 1 to 2 cents lower at midday with rangebound action as trade fades back from the daily test of $3.20 overnight. Ethanol margins remain stable with more plants coming back online. Warmer weather should return later this week with forecasted rain moved west to the drier parts of the belt. Weekly export sales were off a bit from last week at 884,200 metric tons (mt). On the July contract, support is the 20-day moving average at $3.18, which we are testing this morning, and the upper Bollinger band at $3.25, which we tested Tuesday but failed to hold above. SOYBEANS Soybean futures are 8 to 10 cents lower with selling picking up on trade tensions and the dollar reversed this morning. Meal is 2.50 to 3.50 lower and oil is 15 to 25 points lower. South America continues to move along harvest with strong shipments out of Brazil likely to continue unless port issues redevelop with the real solidly off recent lows even with the dollar reversal this morning. Weekly export sales were strong at 1.21 million metric tons (mmt) of old crop, and 464,000 mt of new, with meal at 198,000 mt and oil at 62,100. The July soybean chart support is the lower Bollinger band at $8.29, with resistance the 20-day moving average at $8.42, which we were back above overnight, then the upper Bollinger band at $8.56. WHEAT Wheat futures are 3 cents lower to 3 cents higher with support from the wheat tour and spring wheat planting issues, but pressure as the early dollar losses reversed. Russia looks to have mostly average rainfall near term with France and Germany drier near term, with better rains on tap for much of the Plains. KC is at a 61-cent discount to Chicago on the July with slightly wider action Thursday, while Minneapolis is back to a 10-cent premium. Weekly export sales were rangebound at 175,800 mt old crop and 252,400 of new. The July KC chart support is the lower Bollinger band at $4.40 which we tested Wednesday before bouncing, with resistance the 20-day moving average at 4.72. 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.