DTN Midday Grain Comments 05/10 10:57

DTN Midday Grain Comments 05/10 10:57 Corn Futures Higher at Midday; Soybeans Lower; Wheat Mixed Corn futures are 5 to 7 cents higher at midday Wednesday; soybean futures are 1 to 2 cents lower; wheat futures are 3 cents lower to 3 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 7 cents higher at midday Wednesday; soybean futures are 1 to 2 cents lower; wheat futures are 3 cents lower to 3 cents higher. The U.S. stock market is mixed with the S&P up 10 points. The U.S. Dollar Index is 10 points lower. Interest rate products are firmer. Energies are mixed with crude off .65 and natural gas off .06. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold off $12.00. CORN: Corn futures are 5 to 7 cents higher at midday with stronger spread action as we reverse back from early weakness with little fresh news other than cooler inflation numbers. Ethanol margins remain rangebound with unleaded needing to sustain a rally for blender margins with production off 11,000 barrels per day (bpd) and stocks 72,000 barrels lower. 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 with short-term weather threats limited. Planting progress should remain good in the short term. On the July chart we are solidly above the lower Bollinger band at $5.62, with the fresh low at $5.69 just above that, while $6.00 will be the first resistance area, which we faded from Monday. SOYBEANS: Soybean futures are 1 to 2 cents lower at midday with product action mixed as we see two-sided action at the lower end of the range with little fresh news otherwise. Meal is $2.00 to $3.00 higher and oil is 30 to 40 points lower. Brazil remains the much cheaper corn source as post-harvest movement continues. Basis has generally remained solid in the short term with farmer movement likely to remain slow for fieldwork. New-crop soybeans continue to lag as late acre switching possibilities due to weather diminish with planting progress likely to remain solid. July chart support is the $13.80 year low with the lower Bollinger Band as support at $13.87, with the 20-day moving average above the market at $14.38. WHEAT: Wheat futures are 3 cents lower to 3 cents higher with KC backing off the fresh highs scored overnight. Spread action remains very solid with Plains rains working through Tuesday. Further rains are expected for the Plains, which may accelerate the transition of failing wheat acres into other crops, but can help the better ground finish. Spring wheat planting should pick up overall with good moisture to start and a drier forecast next week. The dollar remains at the lower end of the range and Matif wheat continues to slide, 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. On the KC July Chart, the 20-day moving average is support at $8.17 with $8.63 the next level of resistance, which is the fresh overnight high. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.