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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

 General Comments

   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 
Follow him on Twitter @davidfiala


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