DTN Midday Grain Comments 05/16 10:54

DTN Midday Grain Comments 05/16 10:54 Corn, Soybean Futures Lower at Midday; Wheat Flat-Lower Corn futures are 8 to 10 cents lower at midday Tuesday; soybean futures are 32 to 34 cents lower; wheat futures are flat to 16 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 8 to 10 cents lower at midday Tuesday; soybean futures are 32 to 34 cents lower; wheat futures are flat to 16 cents lower. The U.S. stock market is mixed with the S&P off 10 points. The U.S. Dollar Index is 20 points higher. Interest rate products are weaker. Energies are mixed with crude .40 lower and natural gas up .05. Livestock trade is mixed. Precious metals are weaker with gold down 18.00. CORN: Corn futures are 8 to 10 cents lower at midday with trade pressing back into the lows with softer spread action and negative outside market spillover and benign short-term weather keeping trade on its back foot. Ethanol margins should see a boost if unleaded can extend beginning-of-the-week gains with corn at the lower end of the range with flat action so far. Basis will likely see some mixed action in the short term with the west stronger. The second crop in Brazil continues to make good progress and develop cheaper summer offers with short-term weather threats limited as we push deeper into the growing season. Planting progress should remain good in the short term with the weekly report showing planting at 65% versus 59% on average, and emergence at 30% versus 25% on average and better progress likely for the north in the short term. On the July chart we continue to have support at $5.69 as the recent low while the 20-day moving average looms just above the market at $5.96, which we faded from this Monday. SOYBEANS: Soybean futures are 32 to 34 cents lower with trade scoring fresh lows with weak spread action as oil leads the product complex down. There is little other fresh bullish news to encourage short-covering amid oversold conditions. Meal is $4.50 to $5.50 lower and oil is 170 to 180 points lower. Basis will likely turn a little softer as fieldwork catches up more. Weekly crop progress showed planting at 49% versus 36% on average, and 20% emerged versus 11% on average with weather likely to allow for further short-term progress. July chart support is the $13.65 year low scored Tuesday morning with the lower Bollinger Band at $13.77 as first resistance now. WHEAT: Wheat futures are flat to 16 cents lower with Minneapolis action leading as planting pace remains slow. KC is trying to consolidate gains further and Chicago lags as it sees better conditions and negative spillover from euro values and outside markets. Spring wheat areas should see better progress into next week with good moisture to aid emergence in the short term as we try to catch up. Rains should keeping popping up over the Plains to support what's left of the HRW crop. The dollar has firmed again, while Matif wheat is giving back Monday's gains to drag on Chicago action. Weekly crop progress showed winter wheat 49% headed versus 48% on average, with 41% poor to very poor, 3% better on the week, and with 29% good to excellent, unchanged. Spring wheat is 40% planted versus 57% on average and 13% emerged versus 23% on average. On the KC July Chart, the 20-day moving average is support at $8.21 with $9.12 3/4 the next level of resistance, which is the fresh high for the move Monday with the Upper Bollinger Band at $9.08, just above the market. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.