DTN Midday Grain Comments 05/24 12:00
Corn, Soybeans Mixed at Midday
Trade is slow at midday with narrowly mixed markets.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher with the Dow futures up 30. The
interest rate products are lower. The dollar index is narrowly mixed. Energies
are lower with crude down 0.10. Livestock trade has cattle sharply lower, and
hogs mixed. Precious metals are lower with gold $3.20 lower.
Corn trade is narrowly mixed at midday with trade staying in the middle of
our monthly range; our daily range has been 3 cents. The market focus is on
near term weather forecasts. Soggy conditions are expected to continue this
week in much of the belt which is limiting downside. The western and northern
areas of the belt are dry which is also limiting downside. But as an aggregate
planting progress is normal at this juncture so yield potential remains around
trend line in the minds of traders. The weekly ethanol production number was
down 1.66% and stocks down 3.12% with summer driving season getting going;
gasoline demand was 2.67% higher. Ethanol futures are slightly higher at
midday. On the July chart support is at the 20-day at $3.70. Resistance is at
the May $3.79 high.
Soybean trade is narrowly mixed at midday with trade still working the lower
end of the range after the selling pressure last week. Meal is flat to $1
higher and oil is flat to 10 lower. Trade will continue to watch the currency
moves out of South America with some U.S. export movement still noted. Basis is
steady to firm with the weaker futures of recent days. Weather is not perfect
but it is nothing for the market to be excited about so most expect slow trade
this afternoon with continued mixed trade. The daily range has been 5 lower to
4 higher on the July board. July beans have support at the longer term low of
$9.40, with the weekly low of $9.42 just above that, with resistance at 10-day
moving average of $9.59.
Wheat trade is 1 to 4 cents higher at midday with the higher protein wheats
leading at midday. Early harvest has been lower yields and protein than
expected so far but we are still always from significant harvest pressure, with
the protein spreads remaining active. The dollar rebounded yesterday, but
remains just above 97 on the index with quiet trade today. World weather will
continue to gain importance with concerns about wet weather in Canada and dry
pockets elsewhere. On the July Kansas City contract support is the recent low
at $4.21, with the 10-day at $4.33 as resistance, which we are just above at
midday with the 50-day at $4.38 the next round up from there.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Advisor.
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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