DTN Midday Grain Comments 05/28 11:11
Corn, Wheat Higher at Midday
Corn is 6 to 7 cents higher, soybeans are 4 to 6 cents lower, and wheat is 6
to 9 cents higher.
David Fiala,DTN Contributing Analyst
The U.S. stock market is firmer with the Dow 130 points higher. The dollar
index is 46 points lower. Interest rate products are weaker. Energies are
weaker are weaker with crude $0.20 lower. Livestock trade is weaker with hogs
the downside leader. Precious metals are firmer with gold down $7.00.
Corn trade is 6 to 7 cents higher higher at midday with trade pushing to new
highs for the move with stronger spread trade this a.m. with support from the
weaker dollar and short covering. The weekly ethanol report showed production
up 61,000 barrels per day, with stocks down another 450,000 barrels but the
demand recovery continues to show signs of plateauing. Wetter weather will
persist in some areas into midweek before a warm-up is expected. Basis has
shown isolated signs of strength this week. Export sales will be delayed until
Friday because of the holiday on Monday. On the July contract support is the
20-day at $3.18 which we are tested and held, and the upper Bollinger Band at
$3.23 as resistance which we are above at midday.
Soybean trade is 3 to 5 cents lower at midday with rangebound action
continuing as the ral slides in tandem with the dollar this a.m., and China
tensions rise yet again. Meal is $1.00 to $2.00 higher, and oil is 40 to 50
points lower. South America continues to move along harvest wise with strong
shipments out of Brazil likely to continue unless port issues redevelop due to
strikes or virus related absenteeism. Crush margins remain solid for the time
being. The July soybean chart support is the 20-day at $8.43 with resistance
the upper Bollinger band at $8.57.
Wheat trade is 7 to 11 cents higher at midday with Kansas City action
leading again overnight with support from the dollar sliding below 99 on the
index, and little change to the forecasts. Russia looks to have mostly average
to slightly above rainfall near term with France and Germany drier near term.
Kansas City is at a 52-cent discount to Chicago on the July with narrower
action so far, while Minneapolis is back to a 9 cent premium. The July Kansas
City chart support is the lower Bollinger Band at $4.32 which we tested last
week before bouncing with resistance the 20-day at 4.64.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
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