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DTN Midday Grain Comments 05/20 10:51
Corn, Soybean, Wheat Futures Higher at Midday
Corn futures are 8 to 9 cents higher at midday Monday; soybean futures are
12 to 14 cents higher; wheat futures are 26 to 36 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 8 to 9 cents higher at midday Monday; soybean futures are
12 to 14 cents higher; wheat futures are 26 to 36 cents higher. The U.S. stock
market is firmer at midday with the S&P 20 points higher. The U.S. Dollar Index
is 11 points higher. The interest rate products are weaker. Energies have crude
a dime lower and natural gas a dime higher. Livestock trade is mixed. Precious
metals are firmer with gold up 11.50.
CORN:
Corn futures are 8 to 9 cents higher to start the week with good spillover
support from wheat and positioning ahead of USDA's Crop Progress report with
all eyes on planting progress and forecasts coming forward. Ethanol margins are
seeing pressure with corn rebounding and little change to unleaded. Planting
should have made better progress reported into Sunday with the weekly progress
report likely to show planting still below the 5-year average and emergence
still in line. Weekly export inspections were solid at 1.211 million metric
tons (mmt). South America has little fresh news with little change to the
weather patterns for the second crop in Brazil in the short term. Basis action
has been mostly sideways for the month of May. On the July chart the 20-day
moving average at $4.57 is now nearby resistance, which we are back above at
midday with the lower Bollinger Band as support at $4.41.
SOYBEANS:
Soybean futures are 12 to 14 cents higher at midday after early two-sided
action with broad product strength and planting concerns helping to lead us.
Meal is 2.00 to 3.00 higher and oil is 95 to 105 points higher. South America
will continue to battle short-term export impediments with flooding and strikes
but, overall, the pace should continue to expand. Weekly export inspections
were at marketing year low at 184,128 metric tons (mt). Planting should run
better ahead of the weekend weather systems with the weekly report expected to
be at the 5-year average with emergence just ahead. Basis should remain steady
to softer until processers have better margins to encourage them. The July
soybean futures have resistance at the $12.56 fresh high. Chart support is at
the 20-day moving average at $12.06.
WHEAT:
Wheat futures are 26 to 36 cents higher with overnight strength turning to
bigger buying during the day session as euro values rebound with drier weather
in the Black Sea toward the end of the month. The Kansas wheat tour finished
with the best estimates in three years but still well below the recent high of
2021 at 46.6 bushels per acre (bpa). Further weather systems worked through the
area Sunday with high winds and heavy rains. The dollar is firming back off the
lower end of the recent range with MATIF wheat just short of the recent highs
in sharply higher action. Weekly export inspections were soft at 205,612 mt,
the lowest since November. Weekly crop progress is likely to show steady
conditions and heading well ahead of normal with spring wheat planting and
emergence well ahead of the 5-year average. On the KC July chart support is the
20-day moving average at $6.56, with the fresh high at $7.10 as resistance with
the upper Bollinger Band at $6.99 just below that, which we are just below at
midday.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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