DTN Midday Grain Comments     05/26 11:04

   Soybean, Wheat Futures Higher at Midday; Corn Mixed

   Soybean futures are 31 to 45 cents higher at midday Thursday; wheat futures 
are 9 to 19 cents higher; corn futures are 3 cents lower to 2 cents higher.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Soybean futures are 31 to 45 cents higher at midday Thursday; wheat futures 
are 9 to 19 cents higher; corn futures are 3 cents lower to 2 cents higher. The 
U.S. stock market is firmer with the S&P up 70 points. The U.S. Dollar Index is 
20 points lower. Interest rate products are weaker. Energies are firmer with 
crude up 3.80 and natural gas up .30. Livestock trade is mixed with hogs 
leading. Precious metals are mixed with gold down 1.50.

CORN:

   Corn futures are 3 cents lower to 2 cents higher with softer spread action 
as trade faded back to the lower end of the range again, before firming back 
off the lows as soybeans lead trade higher. The daily export wire has been 
quiet while basis shows some signs of life again in spots. Weekly export sales 
were disappointing at 151,600 metric tons (mt) of old-crop corn and 58,300 mt 
of new. Ethanol margins look to remain rangebound near term with the bounce in 
unleaded to support blending. The second crop in Brazil will head for the 
homestretch while U.S. weather continues to keep moisture in much of the Corn 
Belt with warmer weather into the weekend. On the July contract chart, we have 
resistance at the 20-day moving average at $7.87 with the lower Bollinger Band 
at $7.60 as support, which we tested again overnight with the fresh low at 
$7.55 below that.

SOYBEANS:

   Soybean futures are 31 to 45 cents higher at midday after early weakness as 
strong spread action supports ideas of nearby demand. Meal is $7.00 to $8.00 
higher, and oil is 175 to 185 points higher. South America is moving toward 
post-harvest footing at this point, with planting to remain sluggish with the 
expected moisture this week with the warmer temps to help progress into the 
weekend. Basis has held strength well at processors and exporters. Weekly 
export sales were soft at 276,800 mt of old crop and 443,000 mt of new; meal 
was 159,600 mt old and 58,300 mt of new; and 6,200 of oil. On the July soybean 
chart, we are still solidly above the 20-day moving average at $16.52 with the 
upper Bollinger band at $17.21 the next round up, which we are trying to push 
through at midday.

WHEAT:

   Wheat futures are 9 to 19 cents higher at midday with spring wheat leading 
as volatile action continues with trade bouncing a bit off the overnight lows 
again, keeping the day rallies intact. Russia has allowed limited transit out 
of Mariupol, but we remain a ways off from serious progress in opening more 
ports with weather stabilizing in Europe. The dollar remains fairly rangebound. 
Warmer weather is expected to return soon to push maturity again with spring 
wheat progress likely to continue to struggle. KC wheat is back to a 56-cent 
discount to Minneapolis in wider action, and at an 88-cent premium to Chicago, 
firming a bit. Weekly export sales were disappointing at -2,300 mt of old crop 
and 246,300 mt of new. The KC July chart has resistance at the Upper Bollinger 
Band at $13.83, with the 20-day moving average at $12.17, which we tested 
again, and the low at $11.92 becoming further support.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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