DTN Midday Grain Comments 05/01 11:00

DTN Midday Grain Comments 05/01 11:00 Corn and Wheat Futures Lower, Beans Up Corn trade is 2 to 8 cents lower, beans are 3 to 4 cents higher and wheat trade is 13 to 20 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 2 to 8 cents lower, beans are 3 to 4 cents higher and wheat trade is 13 to 20 cents lower. The U.S. stock market is mixed with the S&P is unchanged. The U.S. Dollar Index is 0.50 higher. Interest rate products are weaker. Energies are weaker with crude up $1.35 and natural gas off $0.09. Livestock trade is mostly lower. Precious metals are mixed with gold off $6.50. CORN: Corn trade is 2 to 8 cents lower at midday Monday with stronger spread action as trade struggles to hold Friday's strength on the front months, with negative outside market influence and little short-term weather concern. Ethanol margins will likely remain rangebound short term with unleaded weakness limiting blender margins. The daily wire will be watched for action after the recent pullback with nothing Monday. Basis will likely remain mixed short term. The second crop in Brazil will continue to be watched into the next part of the growing season with issues remaining limited and cheaper summer offers. Weekly export inspections picked up sharply with 1.518 million metric tons on the week. Planting should start to pick up in some areas again with warmer and drier weather for the middle of the belt into the second week with weekly progress likely staying a bit ahead of the five-year average. On the July chart, we are just above the lower Bollinger Band at $5.80, with further support the fresh low at $5.72. SOYBEANS: Soybean trade is 3 to 4 cents higher in quiet midday trade as it works to build on the solid close to end the week with little fresh news and limited product direction so far. Meal is narrowly mixed, and oil is 0.10 cent to 0.20 cent lower. The daily wire has remained quiet in recent days as Brazil remains much cheaper as harvest winds down and shipping picks up along with exports to Argentine crushers with weekly export inspections rangebound seasonally at 401,976 metric tons. Basis has generally remained solid in the short term with farmer movement likely to slow short term. New crop soybeans have struggled to gain versus corn as well with little change on the break despite late week bean strength with weekly crop progress likely just ahead of average with better progress likely this week. July chart support is the $13.80 year low with the lower Bollinger Band as resistance at $14.02, which we were able to reverse back above to close Friday with the 20-day well above the market at $14.58. WHEAT: Wheat trade is 13 to 20 cents lower with trade fading back to score fresh lows Monday morning while trade looks for mixed rains for the Plains and awaits Monday's condition reports will oversold conditions still in place. Further rains will be needed to stabilize the crop with some dryland areas likely already done for the year, while spring wheat progress should start to catch up a little with crop conditions likely to improve slightly on the week with heading ahead of normal for winter wheat, and spring wheat still well off the five-year pace. The dollar is firming off the lower end of the range. On the world front, India harvest will continue with world weather issues limited for now along with corridor concerns easing for the moment with the next renewal a couple weeks away. On the KC July chart, the lower Bollinger Band at $7.60 is support with the $7.55 3/4 calendar year low scored Monday morning just below that. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.