DTN Midday Grain Comments 05/04 10:46

DTN Midday Grain Comments 05/04 10:46 Corn, Soybeans Seeing Double-Digit Gains Midday Tuesday Corn is 19 to 21 cents higher with new crop 14 to 16 cents higher, soybeans are 16 to 19 cents higher with new crop 14 to 16 cents higher and wheat 6 to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the Dow down 240 points. The U.S. Dollar Index is 0.30 higher. Interest rate products are higher. Energies are higher with crude up $0.80. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up $1.20. CORN: Corn trade is 19 to 21 cents higher at midday Tuesday with new crop up 14 to 16 cents higher with action back to the overnight highs after some early selling during the day session. Ethanol margins will continue to battle between corn values, recovering demand almost back to 2019 levels and tight ethanol stocks. Rains moving through short term will slow remaining planting, with the weekly report putting 46% in the ground versus 36% on average, and 8% emerged versus 9% on average; we will likely remain well above average in progress through next week. Brazil continues to struggle with dryness during pollination. Corn basis is holding firm throughout the belt. On the July contract, chart resistance is the fresh contact high at $7.03 1/4 with support the recent low at $6.29 1/2. SOYBEANS: Soybeans are 16 to 19 higher with spread action trying to firm after the Monday weakness. New crop has been unable to close the gap to corn this morning despite being 14 to 16 cents higher. Meal is $5.50 to $6.50 higher and oil is 0.60 cent to 0.80 cent higher. Planters will continue to roll short term with some areas of rain slowing action and progress pushing further ahead of average with the weekly report showing 24% in the ground versus 11% on average. South America should continue to see shipping progress with some Argentina soybeans starting to move. On the July soybean chart, support is the recent low at $14.90, with resistance the upper Bollinger Band at $15.79. WHEAT: Wheat trade is 6 to 8 cents higher at midday with action following the lead of the row crops so far with little change to near-term weather or on the weekly crop report. The dollar is trying to bounce Tuesday with a multiday rally needed to signal a shift in direction that would limit upside. KC is at 30-cent discount to Chicago with Minneapolis now 40 cents above Chicago. Seasonal weather on the Plains should boost growth with dry concerns for spring wheat staying in place and crop conditions for winter wheat down 1% to 48% good to excellent and 19% poor to very poor, with 27% headed versus 34% on average, while spring wheat is 49% planted versus 32% on average and 14% emerged versus 10% on average. KC July on the chart has support at the recent low of $6.86 3/4 and resistance the upper Bollinger Band at $7.42. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.