Wednesday, May 15, 2013

DTN Midday Comments on Grains

Wheat, Beans Lower at Midday

Grain trade is narrowly mixed at midday.
By David Fiala DTN Contributing Analyst
General Comments on Grains
The U.S. stock markets are higher with the Dow up 40. The interest rate products are mixed. The dollar index is 37 higher. Energies are lower with crude off $1.20. Livestock trade is mixed. Precious metals are lower with gold down $30.
CORN
Corn trade is 1 higher on July to 3 lower on December new crop at midday in slow trade. The outside markets have gold down and the dollar up, which should limit upside in commodities, plus crude is lower. The stock market is higher, but this is not an independent outside market. The economics mind set of money chaces returns has a flow of money going into the stock market which is hard for equity analysts to predict when this could stop. Planters are running full go in most of the Corn Belt this week with the record heat drying out the slow areas. This will also do a lot for getting soil temperatures back closer to normal. The crop is slow and behind, but many producers now hope to have the crop in the ground before the end of the week. Estimates are in the 55%-60% range for the planting progress next Monday. Then we should make another good leap in progress prior to Memorial day. On the July chart we have found some resistance at the $6.57 50-day moving average this week. The 100-day up at $6.86 is the next upside target, with support at the $6.40 20-day. The fact May traded up to $7.22 yesterday on last trading day and we will not have any new corn in this country by July should be ammo for market bulls moving forward. 

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