DTN Midday Grain Comments 05/17 11:01

DTN Midday Grain Comments 05/17 11:01 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 24 to 26 cents lower at midday Wednesday; soybean futures are 23 to 24 cents lower; wheat futures are 7 to 30 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 24 to 26 cents lower at midday Wednesday; soybean futures are 23 to 24 cents lower; wheat futures are 7 to 30 cents lower. The U.S. stock market is firmer with the S&P up 17 points. The U.S. Dollar Index is 40 points higher. Interest rate products are mixed. Energies are mixed with crude 1.15 higher and natural gas off .03. Livestock trade is mixed. Precious metals are mixed with gold down 7.00. CORN: Corn futures are 24 to 26 cents lower at midday with spread action sharply weaker again. December and July are scoring fresh lows with oversold conditions and little fresh news to entice buyers. Ethanol margins should see some improvement with the weekly report showing production up 22,000 barrels per day (bpd), with stocks off 100,000 barrels. The daily wire showed 272,000 metric tons (mt) of old crop corn cancelled by China. 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 head for the homestretch for most areas with warmer temps to boost stands on emerged acres. On the July chart we continue to have support in the $5.50 area with the lower Bollinger Band at $5.66, above the market. SOYBEANS: Soybean futures are 23 to 24 cents lower at midday with fresh lows being scored for old and new crop as we push deeper into oversold conditions with little fresh news to encourage short-covering and continued soft product action. Meal is $0.50 to $1.50 lower and oil is 90 to 110 points lower. Basis will likely turn a little softer as fieldwork catches up. Planting progress should move along nationally with little short-term weather concerns. July chart support is in the $13.25 area with the lower Bollinger Band above the market at $13.58. WHEAT: Wheat futures are 7 to 30 cents lower with KC leading as the wheat tour finds poor yields and plenty of abandoned acres with a fresh high for the move being scored before spillover weakness from the row crops and other wheat classes drug action back lower. 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 while rains should keeping popping up over the Plains to support what's left of the HRW crop the balance of the month. The dollar has firmed again, while Matif wheat is pressing back to the lows with the grain corridor being extended after all. On the KC July Chart, the 20-day moving average is support at $8.24 with $9.18 3/4 the next level of resistance, which is the fresh high for the move Wednesday morning with the Upper Bollinger Band at $9.17, 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.