DTN Midday Grain Comments 05/20 10:54

DTN Midday Grain Comments 05/20 10:54 Corn, Soybeans Higher Midday Thursday Corn is 11 to 13 cents higher, soybeans are 6 to 8 cents higher and wheat flat to 4 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow up 280 points. The U.S. Dollar Index is 0.30 lower. Interest rate products are higher. Energies are weaker with crude down $0.30. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold $2.80 lower. CORN: Corn trade is 11 to 13 cents higher at midday with trade working back to the highs of the week, with the recovery from the sell-off Wednesday, along with China securing 1.224 million metric tons of new crop -- keeping the streak alive. Ethanol margins will narrow a little if the energy weakness continues with old-crop corn stabilizing. Weather looks to warm up with better moisture for many areas, with Eastern Corn Belt looking the driest. Brazil weather looks mostly unchanged short term. Corn basis wobbled a little bit with the river issues but looks flatter through midweek. Weekly export sales had old crop at 277,600 metric tons and new at 4.06 million metric tons. On the July contract chart resistance is the 20-day at $6.77, with support the fresh low at $6.33. SOYBEANS: Soybeans are 6 to 8 cents higher at midday with trade seeing broad two-sided trade with spread action flat, and meal trying to lead the product complex. Meal is $0.50 to $1.50 higher and oil is 0.35 cent to 0.45 cent lower. Planters will continue to roll short term with some areas of rain slowing action, with warmer temps to boost emergence by the end of the week. South America should continue to see shipping progress short term, with U.S. basis sliding and China domestic crush margins improving. Export sales were soft at 84,200 metric tons of old crop, and 96,000 of new with meal at 189,400 metric tons old, and 77,600 new, and oil at -4,500. On the July soybean chart, support is the lower Bollinger Band at $14.85, and resistance the 20-day at $15.57 that we slipped below Wednesday. WHEAT: Wheat trade is 2 cents lower to 2 cents higher with Chicago leading as trade continues to consolidate at the lower end of the recent range. Seasonal weather on the Plains should boost growth with big rains in parts of Kansas and a better forecast for the North short term with more mixed action on the wheat tour Wednesday. 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 with the index edging back below 90 points. Export sales were in line with recent weeks at 121,000 metric tons old crop, and 317,700 metric tons new. KC continues at a 51-cent discount to Chicago, with Minneapolis at a 16-cent premium. KC July on the chart has remains below the 20-day at $6.87 with the lower Bollinger Band below that at $6.28, which we closed just above. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.