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DTN Midday Grain Comments 05/22 10:52
Corn, Soybean Futures Higher at Midday; Wheat Lower
Corn futures are 2 to 3 cents higher at midday Thursday; soybean futures are
5 to 6 cents higher; wheat futures are 3 to 6 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 2 to 3 cents higher at midday Thursday; soybean futures are
5 to 6 cents higher; wheat futures are 3 to 6 cents lower. The U.S. stock
market is flat with the S&P 1 point higher. The U.S. Dollar Index is 35 points
higher. The interest rate products are flat to firmer. Energy trade is weaker
with crude .50 lower and natural gas .13 lower. Livestock trade is firmer.
Precious metals are weaker with gold off 20.00.
CORN:
Corn futures are 2 to 3 cents higher at midday in light, two-sided action,
turning to better buying during the day session as we extend recent gains.
Ethanol margins are narrowing with the corn rebound as unleaded struggles to
sustain nearby momentum. Remaining planting progress will be slowed by cooler
and wetter weather through the weekend for most. Weekly export sales remained
solid at 1.191 million metric tons (mmt) of old-crop corn and 218,400 metric
tons (mt) of new-crop. Basis continues to hold the recent range. Double crop in
Brazil continues to develop with little issue. On the July chart, the 20-day
moving average at $4.59 is support, which we closed just above Wednesday, with
$4.70 the next level up as resistance.
SOYBEANS:
Soybean futures are 5 to 6 cents higher at midday with trade firming back
from initial dime lower action as meal leads the product complex as more
biodiesel developments get digested. Meal is 4.50 to 5.50 higher and oil is 85
to 95 points lower. Further guidance on biodiesel credits was initially deemed
bearish with feedstock guidelines not as exclusive as hoped. South American
harvest pressure will continue to fade as it hits the homestretch. Planting
will be slowed by near-term rains and cooler weather into next week before
drier weather returns for the north. Basis should remain sideways short term.
Weekly export sales were unspectacular at 307,900 mt of old-crop, 15,000 mt of
new-crop, 359,600 of old meal, 23,100 of new meal, and 13,700 of oil. On the
July chart, support is the 20-day moving average at $10.54, which we moved
above, with the recent high at $10.82 the next round up.
WHEAT:
Wheat futures are 3 to 6 cents lower with the rebound in the dollar limiting
upside as we consolidate further above nearby support and little other fresh
news. The hard red wheat areas are expected to see near-normal moisture for the
balance of the month with spring wheat areas likely to dry out a bit into June.
MATIF wheat is a bit softer Thursday morning after pushing through resistance
as well. Weekly export sales had 13,400 mt of old-crop cancelled and 882,200 mt
of new-crop sold. On the KC July chart, support is the 20-day moving average at
$5.29 that we pushed above earlier in the week, with the Upper Bollinger Band
at $5.51 the next level of resistance.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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