DTN Midday Grain Comments 05/29 11:20
Corn, Beans Lower at Midday
Corn is 3 to 4 cents lower, soybeans are 4 to 6 cents lower, and wheat is 1
to 6 cents higher.
David Fiala,DTN Contributing Analyst
The U.S. stock market is weaker with the Dow 190 points lower. The dollar
index is 20 points lower. Interest rate products are firmer. Energies are mixed
are weaker with crude unchanged. Livestock trade is weaker with cattle the
downside leader. Precious metals are firmer with gold up $21.00.
Corn trade is 3 to 4 cents with trade holding gains from the rally yesterday
as we look to consolidate into a higher range with pressure from trade concerns
and spillover from soybeans. Ethanol margins remain stable with unleaded demand
holding the recent plateau. Warmer drier weather for most is expected into next
week. Basis has shown isolated signs of strength this week. Export sales were
softer at 427,200 metric tons old crop, and 46,500 of new. The USDA announced
101,600 metric tons sold to unknown on the daily wire. On the July contract
support is the upper Bollinger band at $3.24, and resistance the fresh high at
Soybean trade is 3 to 5 cents lower at midday with rangebound action
continuing as the ral slides in tandem with the dollar this AM, and China
tensions remain at the forefront. Meal is $1.00 to $2.00 lower, and oil is flat
to 10 points higher. 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. Export sales were softer from last week, at 644,300 metric tons of
old crop, 203,000 metric tons of new crop, 127,000 of meal, and 56,600 of oil.
The USDA also announced 132,000 metric tons of soybeans split between crop
years sold to China. The July soybean chart support is the 20-day at $8.43
which we are testing this AM with resistance the upper Bollinger Band at $8.57.
Wheat trade is 1 to 7 cents higher with Kansas City trade leading again as
the dollar tests 98 on the index. Russia looks to have mostly average to
slightly above rainfall near term with France and Germany drier near term,
while the plains look to trend warmer and drier. Kansas City is at a 49-cent
discount to Chicago on the July with narrower action so far, while Minneapolis
is back to a 1 cent premium. Export sales were solid at 209,800 metric tons old
crop, and 465,900 metric tons. 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 which we are above at midday.
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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