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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
Follow him on Twitter @davidfiala

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