DTN Midday Grain Comments 05/24 10:44

DTN Midday Grain Comments 05/24 10:44 Grain Futures Starting the Week Lower Corn is 4 to 6 cents lower up front and 9 to 11 cents lower on new crop, soybeans are 7 to 10 cents lower and wheat 9 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow up 240 points. The U.S. Dollar Index is 0.17 lower. Interest rate products are firmer. Energies are firmer with crude up $1.70. Livestock trade is weaker. Precious metals are firmer with gold $9.00 higher. CORN: Corn trade is 4 to 6 cents lower up front and 9 to 11 cents lower on new crop overnight with rains working through much of the Corn Belt, encouraging selling early while spread trade remains firm to start the week. Ethanol margins should be slightly improved with energies bouncing back and corn pulling back. Weather looks cooler and wetter in the short term after the weekend warmup to boost growth. Brazil weather looks mostly unchanged short term. Corn basis should remain flat near term. Weekly crop progress will likely show the first condition report slightly above the five-year average, with planting and emergence solidly ahead of average. Weekly export inspections remain solid at 1.728 million metric tons, with last week revised slightly higher as well. On the July contract, chart resistance is the 20-day at $6.78, with support the fresh low at $6.33. SOYBEANS: Soybeans is 8 to 12 cents lower at midday with trade rallying back to flat before fading again, with initial spread strength evaporating again. Meal is narrowly mixed and oil is 0.25 cent to 0.35 cent lower. Warmer weather should have boosted emergence as planting heads towards the homestretch with both expected to be solidly ahead of the five-year pace and export inspections remaining in the seasonal range at 193,912 metric tons. 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 $14.82, and resistance the 20-day at $15.56 that we slipped below last week. WHEAT: Wheat trade is 9 to 18 cents lower following the lead of the row crops to start the week, with moisture for many growing areas and good numbers last week on the Kansas crop tour. Seasonal weather on the Plains should boost growth on the Southern Plains as we try to catch up to the average pace on heading with conditions likely steady on the weekly report. Spring wheat is likely to start behind the five-year average on conditions despite some relief rains. Weekly export inspections were in line with expectations at 573,912 metric tons. Other Northern Hemisphere weather will continue to be watched as well with little fresh news. The dollar remaining at the lower end of the range should add support as well with the index holding around 90. KC continues at a 48-cent discount to Chicago, with Minneapolis at a 28-cent premium. KC July on the chart has remains below the 20-day at $6.79 with the lower Bollinger Band below that at $6.08, which we are just above at midday. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2021 DTN, LLC. All rights reserved.