DTN Midday Grain Comments 05/26 11:07
Grains Mixed at Midday
Trade is higher for corn and wheat, soybeans making new lows.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are lower with the Dow futures down 15. The
interest rate products are mostly higher. The dollar index is 20 points higher.
Energies are mixed with crude up 0.30. Livestock trade is mixed. Precious
metals are mixed with gold $9.80 higher.
Corn trade is 3 to 5 cents higher at midday with corn trying to close out
another positive week going into the Holiday weekend. Crop weather will be the
main market driver moving forward as trade goes into the long weekend with near
term conditions remaining soggy in the east, and drier conditions building on
the northern planins. Ethanol margins futures have bounced this morning but
firmer corn and middling unleaded values are limiting margin gains. On the July
chart support is at the $3.69- $3.70 area where we find the major moving
averages clustered. Resistance is at the May $3.79 high.
Soybean trade is 5 to 9 cents lower at midday with continued liquidation
after new lows were made. Meal is $1 to $2 lower and oil is 20 to 30 points
lower. Continued long liquidation may stick around into the weekend in the
absence of a major weather driver in the near term. Basis is steady to firm
with the weaker futures of recent days. Chinese crush margins have turned
negative, and there has been talk of canceled US Cargos weighing on the market.
July beans have new support at $9.32, with resistance at 10-day moving average
Wheat trade is 4 to 7 cents higher at midday with firmer action developing
during the day session ahead of the long weekend and broader harvest expansion.
Early yields remain on the light side with poor protein. World weather will
continue to gain importance with concerns about wet weather in western Canada
and dry pockets elsewhere with the Dakota's now moving into drought conditions.
The dollar continues to drift at the lower end of the range. On the July KC
contract support is the recent low at $4.21, with the 10-day at $4.30 just
below the market with the 50-day at $4.37 which we are testing at midday.
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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