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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

 General Comments

   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 
Follow David Fiala on Twitter @davidfiala


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