DTN Midday Grain Comments 05/25 10:58

DTN Midday Grain Comments 05/25 10:58 Corn, Soybean Futures Double-Digits Lower at Midday Corn futures are is 28 to 32 cents lower in the old crop contracts and 13 to 16 cents lower on new crop; soybean futures are 16 to 20 cents lower; and wheat futures are 8 to 14 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the DOW down 60. The U.S. Dollar Index is 6 points lower. Interest rate products are firmer. Energies are flat with crude unchanged. Livestock trade is mostly higher. Precious metals are mixed with gold 7.70 higher. CORN: Old-crop corn futures are 32 to 34 cents lower at midday with new-crop contracts 19 to 21 cents lower. Spread trade is unwinding as broad selling developed at midmorning after early two-sided action. Ethanol margins should be improved with energies bouncing back and corn pulling back. Weather looks cooler and wetter for most in the short term in the Corn Belt. Brazil weather looks mostly unchanged short term with some relief rains. Corn basis should remain flat near term. Weekly crop progress delayed the first condition report until next week with planting at 90% complete vs. 80% on average; emerged at 64% vs. 54% on average. On the July contract chart resistance is the 20-day moving average at 6.78, with support the lower Bollinger Band at $6.16. SOYBEANS: Soybean futures are 13 to 16 cents lower on the front months, and 19 to 21 cents lower on new-crop contracts with stronger spread action holding up at midday despite the selling spilling over from corn. Meal is $13.60 to $14.60 lower and oil is 100 to 110 points higher. Warmer weather should have boosted emergence as planting heads towards the homestretch at 75% complete vs 54% on average with emergence at 41% vs. 25% on average. South America should continue to see shipping progress short term, with U.S. basis stabilizing 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 moving average at $15.57, which we slipped below last week. WHEAT: Wheat futures are 8 to 14 cents lower at midday with gains fading as the forecast looks promising and spillover from row crops despite the poor condition reports for spring wheat. Seasonal weather on the Plains should boost growth in the Southern Plains as we try to catch up to the average pace on heading getting to 67% vs. 69% on average. Conditions are down 1 point to 47% good to excellent and 18% poor to very poor, with spring wheat at 45% good to excellent and 14% poor to very poor on 66% emerged vs. 56% on average and planting at 94% vs. 78% on average. Other Northern Hemisphere weather will continue to be watched 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 just below 90. KC continues at a 52-cent discount to Chicago, with Minneapolis at a 23-cent premium. KC July on the chart remains below the 20-day moving average at $6.75 with the lower Bollinger band below that at $5.98, 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.