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DTN Midday Grain Comments     05/26 11:04

   Grains Mixed at Midday 

   Corn is 1 to 2 cents higher, soybeans are 10 to 12 cents higher, and wheat 
is 2 cents lower to 2 cents higher.

David Fiala,DTN Contributing Analyst

   The U.S. stock market is firmer with the Dow 615 points higher. The dollar 
index is 88 lower. Interest rate products are weaker. Energies are firmer with 
crude $0.60 higher. Livestock trade is firmer. Precious metals are mixed with 
gold down $28.00.


   Corn trade is 1 to 2 cents higher at midday with trade finding light buying 
to open the week with rains still moving through parts of the belt and 
supportive outside markets with the dollar sharply lower. 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 ethanol and 
unleaded futures firmer this a.m. Wetter weather will persist in some areas 
into midweek before a warm up is expected. Weekly export inspections were solid 
at 1.091 million metric tons, with weekly crop progress showing planting near 
90%, and emergence just behind average. On the July contract support is the 
20-day at $3.18 which we are tested and held, and the upper Bollinger Band at 
$3.23 as resistance.


   Soybean trade is 10 to 12 cents higher with trade finding support from 
further easing of harvest pressure and currency gains this AM. Meal is .50 to 
1.50 higher and oil is 55 to 65 points higher. China secured 246,000 metric 
tons of beans, and unknown bought 216,000 metric tons of meal. South America 
continues to move along harvest wise with strong shipments out of Brazil likely 
to continue unless port issues redevelop, with the real at multi-week highs 
which crimps local prices a bit. Crush margins remain solid as well. Weekly 
export inspections were soft at 333,127 metric tons, with planting progress 
remaining just ahead of average. The July soybean chart support is the lower 
Bollinger Band at $8.27, with resistance the 20-day at $8.42 which we have 
edged above at midday.


   Wheat trade is 2 cents lower to 3 cents higher with improved short term US 
weather, and little change overseas, with support from the weaker dollar so 
far. Russia looks to have mostly average rainfall near term with France and 
Germany drier near term. KC is at a 62-cent discount to Chicago on the July 
with slightly narrower action so far, while Minneapolis is back to a 9 cent 
premium. Weekly export inspections were rangebound at 457,777 metric tons. 
Weekly crop progress should show steady winter wheat conditions with maturity 
still lagging a touch, while spring wheat planting will remain well behind 
normal. The July KC chart support is the lower Bollinger band at $4.33 which we 
tested last week before bouncing with resistance the 20-day at 4.66.

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser.
He can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala

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