DTN Midday Grain Comments 05/27 12:01
Grains Trending Higher at Midday
Corn is flat to 1 cent higher, soybeans are 1 to 2 cents higher, and wheat
is 2 cents lower to 2 cents higher.
David Fiala,DTN Contributing Analyst
The U.S. stock market is mixed with the Dow 200 points higher. The dollar
index is 29 higher. Interest rate products are firmer. Energies are weaker with
crude $1.80 lower. Livestock trade is firmer. Precious metals are weaker with
gold down $12.00.
Corn trade is flat to 1 cent higher at midday with trade remaining
rangebound with little fresh news. Ethanol margins remain stable with more
plants coming back online with demand improvements needing to be sustained with
signs of a plateau in recent days with the report delayed until tomorrow.
Wetter weather will persist in some areas into midweek before a warm up is
expected. Basis has shown isolated signs of strength this week. Weekly crop
progress had planting at 88% vs. 82% on average, with 64% emerged vs. 58% on
average, and initial conditions at 70% good to excellent, and 5% poor to very
poor. On the July contract support is the 20-day at $3.18, where we are tested
and held, and the upper Bollinger Band at $3.23 as resistance.
Soybean trade is flat to 2 cents higher at midday with the reversal in the
real sticking so far, but buying remains limited at the middle of the recent
range. Meal is $1.00 to $2.00 lower and oil is 25 to 35 points higher. South
America continues to move along harvest-wise with strong shipments out of
Brazil likely to continue unless port issues redevelop, with the ral at
multi-week highs, which crimps local prices a bit. Crush margins remain solid
as well. Weekly crop progress showed planting at 65% vs. 55% on average, with
emergence at 35% vs. 27% on average. The July soybean chart support is the
20-day at $8.42 with resistance the upper Bollinger band at $8.57.
Wheat trade is 2 cents lower to 2 cents higher with Kansas City trade
leading at midday and little fresh news and oversold conditions. Russia looks
to have mostly average rainfall near term with France and Germany drier near
term with little change to the Plains forecast. Kansas City is at a 57-cent
discount to Chicago on the July with narrower action so far, while Minneapolis
is back to a 9 cent premium. Weekly crop progress showed heading at 68% vs. 72%
on average, with 54% good to excellent, up 2%, and poor to very poor at 5%,
while spring wheat is 81% planted vs. 90% on average, and 51% emerged vs. 65%
on average. The July Kansas City chart support is the lower Bollinger Band at
$4.33 which we tested last week before bouncing with resistance the 20-day at
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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