DTN Midday Grain Comments 05/21 10:51

DTN Midday Grain Comments 05/21 10:51 Corn Down, Soybeans Up, Wheat Mixed Midday Friday Corn is 1 to 4 cents lower, soybeans are flat to 6 cents higher and wheat 4 cents lower to 4 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow up 245 points. The U.S. Dollar Index is 0.17 lower. Interest rate products are mixed. Energies are firmer with crude up $1.90. Livestock trade is mostly higher. Precious metals are weaker with gold $5.80 lower. CORN: Corn trade is 1 to 4 cents lower at midday Friday with stronger spread action and trade coming off overnight lows. Spillover pressure from soybeans is easing and position squaring going into the weekend is expected to pick up. Ethanol margins should be slightly improved with energies bouncing back and corn pulling back from the Thursday gains. Weather looks to warm up with better moisture for many areas, with the 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 heading towards the weekend. The streak of sales to China for new crop ended at six days. On the July contract, chart resistance is the 20-day at $6.78, with support the fresh low at $6.33. SOYBEANS: Soybeans are flat to 6 cents higher at midday with spread trade improving and trade well off the overnight lows and product values improving. Meal is flat to $1.00 higher and oil is 0.40 cent to 0.50 cent higher. Planters will continue to roll short term with some areas of rain slowing action and warmer temps likely to boost emergence. South America should continue to see shipping progress short term, with U.S. basis sliding and China domestic crush margins improving. On the July soybean chart, support is the lower Bollinger Band at $14.83 and resistance the 20-day at $15.57 that we slipped below midweek. WHEAT: Wheat trade is 3 cents lower to 2 cents higher at midday with trade getting increasingly oversold and spillover from row crops. We saw better than expected findings on the Kansas tour and weakness in Euro values in recent days, but we have seen spots of two-sided action. Seasonal weather on the Plains should boost growth on the Southern Plains, and a better forecast for the North short term with more mixed action for Europe. 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 holding below 90 points. KC continues at a 51-cent discount to Chicago, with Minneapolis at a 23-cent premium. KC July on the chart has remains below the 20-day at $6.83 with the lower Bollinger Band below that at $6.16, which we closed just above Thursday. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.