DTN Midday Grain Comments 05/18 10:46

DTN Midday Grain Comments 05/18 10:46 Corn Headed Higher Midday Tuesday Corn is 9 to 11 cents higher, soybeans are 2 to 3 cents lower with new crop 4 to 5 cents higher and wheat 3 to 6 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the Dow down 60 points. The U.S. Dollar Index is 0.30 lower. Interest rate products are mixed. Energies are mixed with crude down $0.50. Livestock trade is mixed. Precious metals are flat with $1.50 higher. CORN: Corn trade is 9 to 11 cents higher at midday with slightly stronger spread action as the July contract continues to lead with little surprise on the weekly crop progress report and good demand. Trade looks for more new-crop sales with another 1.36 million metric tons sold to China. Ethanol margins should remain solid with ethanol values offsetting the corn rebound. Weather looks to warm up with better moisture for many areas. Brazil continues to struggle with dryness during pollination and crop estimates still falling but time running out to change the crop size much in either direction, albeit with some relief rains out there. Corn basis wobbled a little bit with the river issues. Weekly crop progress put corn planting at 80% complete versus 68% on average, with emergence at 41% versus 35% on average. On the July contract, chart resistance is the 20-day at $6.69, with support the fresh low at $6.33. SOYBEANS: Soybeans is 2 to 3 cents lower at midday with weaker spread trade after testing $16.00 again overnight, while new crop holds on to 4- to 5-cent better action; meal is $1.00 to $2.00 lower and oil 0.20 cent to 0.30 cent lower. Planters will continue to roll short term with some areas of rain slowing action and warmer temps to boost emergence by the end of the week, with planting well ahead of average at 61% versus 37% on average and emergence at 20% versus 12%. South America should continue to see shipping progress short term, while domestic crush will carry U.S. basis with oil continuing to lead action but notable processor weakness in some areas. On the July soybean chart, support is the 20-day at $15.53, with resistance at the upper Bollinger Band at $16.36. WHEAT: Wheat trade is 3 to 6 cents higher at midday with support from the dollar making new lows and spillover from the row crops. Seasonal weather on the Plains should boost growth with big rains in parts of Kansas and a better forecast for the North, with conditions down 1% at 48% good to excellent and 19% poor to very poor, and heading at 53% versus 58% on average. Spring wheat is 85% planted versus 71% good to excellent, and 47% emerged versus 36% on average with better rains expected. Other Northern Hemisphere weather will continue to be watched as well with little fresh news on the front. The dollar remaining at the lower end of the range should add support as well. KC July on the chart has remains below the 20-day at $6.90 with the lower Bollinger Band below that at $6.38. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.