DTN Midday Grain Comments 05/22 11:27
All Grains Lower at Midday
Soybeans fall to new lows pulling corn and wheat along.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are mixed with the Dow index down 60. The
interest rate products are mostly higher. The dollar index is 78 points higher.
Energies are lower, crude is down .80. Livestock trade is mixed with hogs
stronger. Precious metals are mixed with gold up $2.
Corn trade is 4 cents lower at midday with the sharply stronger dollar and
weaker soybean trade triggering selling this morning. The weather is viewed as
mixed with some areas too wet, but production concerns remain limited for now.
Ethanol margins remain OK with the demand upticking for summer especially ahead
of a Holiday weekend albeit this has not been a great week for production
margins with ethanol down and corn slightly lower. On the December corn chart
we are just below the 10-day and 20-day moving averages at $3.80; which are
nearby resistance then the $3.96 50-day. Support is at $3.72 recent low.
Soybean trade is 5 to 9 cents lower at midday with early strength
evaporating during the day session. Meal is flat to $1 higher, and oil is 50 to
60 points lower. July beans traded within a few pennies of the contract low
overnight; expect sell stops below $9.35 if we drop below there during the day
trade especially as we head into the Holiday weekend. Wet weather is expected
to keep planting pace slow in the western belt. We continue to caution the
large global supplies and negative chart trend may continue to bleed the soy
complex lower. Thailand bought 109,400 metric tons of soymeal today. On the
November soybean chart the 10-day at $9.30 is resistance with support at the
$9.15 low then $9.
Wheat trade is 7 to 10 cents lower across the three contracts at midday with
the sharply stronger dollar encouraging selling going into the Holiday weekend.
Excessively wet weather in the US and hints of dryness elsewhere were behind
the strength and lack of selling last week; this continues to limit downside
this week. The comfortable world supplies should continue to limit US export
competitiveness in the near term along with the dollar, but Taiwan did buy
101,950 metric tons of wheat. On KC July chart support is now the 50-day moving
average at $5.37 with resistance at the 100-day at $5.68 then the 200-day at
David Fiala can be reached at email@example.com
Follow David Fiala on Twitter @davidfiala
Copyright 2015 DTN/The Progressive Farmer. All rights reserved.
For more free DTN information sent right to your email each morning - click here
to sign up for DTN Snapshot.