DTN Midday Grain Comments 05/08 10:59

DTN Midday Grain Comments 05/08 10:59 Corn, Soybean Futures Lower at Midday; Wheat Mixed Corn futures are 1 to 5 cents lower at midday Monday; soybean futures are 3 to 7 cents lower; wheat futures are 6 cents lower to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 5 cents lower at midday Monday; soybean futures are 3 to 7 cents lower; wheat futures are 6 cents lower to 8 cents higher. The U.S. stock market is weaker with the S&P off 7 points. The U.S. Dollar Index is 7 points higher. Interest rate products are weaker. Energies are firmer with crude up 1.60 and natural gas up .10. Livestock trade is mixed with feeder cattle leading. Precious metals are mostly higher with gold off $7.70. CORN: Corn futures are 1 to 5 cents lower with firm spread action continuing as trade fades from the early test of $6.00 with early buying interest fading and little other fresh news. Ethanol margins will likely remain rangebound in the short term with unleaded needing to rebound further to boost blender margins with significant progress the last couple sessions. Weekly export inspections were disappointing at 963,351 metric tons (mt). Basis is expected to remain sideways in the short term. The second crop in Brazil continues to make good progress and develop cheaper summer offers, but some dryness possibilities have crept into the near-term forecast. Planting should continue to move forward at a good clip, except for the north. On the July chart we are solidly above the lower Bollinger band at $5.67, with the fresh low at $5.69 just above that while $6.00 will be the first resistance area. SOYBEANS: Soybean futures are 3 to 7 cents lower with spreads remaining firm as early gains fade with product action losing the early forward momentum. Meal is flat to $1.00 lower and oil is 50 to 60 points lower. Brazil remains the much cheaper source as their shipping window continues, Weekly inspections faded seasonally to 394,755 metric tons (mt). Basis has generally remained solid in the short term with farmer movement likely to remain slow for fieldwork. New-crop soybeans have given back last week's early gains with late acre switching unlikely as planting will remain above average pace along with emergence. July chart support is the $13.80 year low with the lower Bollinger Band as support at $13.91, with the 20-day moving average just above the market at $14.45. WHEAT: Wheat trade is 6 cents lower to 8 cents higher at midday with KC and Minneapolis action continuing to lead with the apparent end of the Ukraine grain shipping corridor for now. Also, ideas that it's too late for significant recovery on the Plains are bullish, but we have faded well off the top of the day range. Further rains are expected for the Plains, which may accelerate the transition of failing wheat acres into other crops. The dollar remains at the lower end of the range and Matif wheat remains cheap, limiting Chicago upside in the short term. On the world front, little has changed with Northern Hemisphere weather underway and stable weather for continental Europe except dryness for Spain. Weekly export inspections faded a bit to 209,138 mt. Weekly crop progress will likely show slightly better winter wheat conditions and ahead of pace in heading, with spring wheat planting starting to catch up a bit. On the KC July chart, the 20-day moving average becomes support at $8.16 with $8.50 the next level of resistance, which we have tested this morning before fading. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.