DTN Midday Grain Comments 05/18 10:59

DTN Midday Grain Comments 05/18 10:59 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 3 to 9 cents lower at midday Thursday; soybean futures are 3 to 5 cents lower; wheat futures are 14 to 29 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 9 cents lower at midday Thursday; soybean futures are 3 to 5 cents lower; wheat futures are 14 to 29 cents lower. The U.S. stock market is mixed with the S&P up 17 points. The U.S. Dollar Index is 70 points higher. Interest rate products are weaker. Energies are mixed with crude .80 lower and natural gas up .15. Livestock trade is mixed with feeder cattle at fresh highs. Precious metals are weaker with gold down 30.00. CORN: Corn futures are 3 to 9 cents lower at midday with trade pressing back into fresh lows yet again. Spread action remains weak with broad risk-off trade again in the ags. Demand and debt ceiling concerns dominate amid oversold conditions as the early rally faded. Ethanol margins continue to improve, especially on the back end for fall and winter. Weekly export sales hit a marketing year low at -339,000 metric tons (mt) old crop and 74,000 mt new. Basis continues to hold a softer tone as fieldwork slows down to allow for better movement. 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 at the $5.47 fresh low with the lower Bollinger Band at $5.60 above the market. SOYBEANS: Soybean futures are 3 to 5 cents lower at midday, pressing into fresh lows before moving to more two-sided action in the day session with oil turning more positive after fresh lows. Meal is $6.50 to $7.50 lower and oil is 60 to 70 points higher. Weekly export sales were improved a touch with old crop at 17,000 mt old, 663,800 mt of new crop, meal at 202,500 old, 89,000 new and oil at 900 mt. Basis will likely turn a little softer as fieldwork catches up more. Planting progress should move along well nationally with little short-term weather concerns. July chart support is the $13.25 area with the lower Bollinger Band above the market at $13.46. WHEAT: Wheat futures are 14 to 29 cents lower at midday with trade gapping lower on the open. KC is the downside leader as aggressive spread unwinding picked up this morning despite the continued poor yield tour findings. In addition, the Ukraine grain corridor agreement was extended after all and there has been continued negative row-crop spillover. 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, scoring fresh highs for the move, while Matif wheat scoring fresh lows as well. Weekly export sales were soft on old crop at -42,000 mt old crop, and 336,800 mt of new crop. On the KC July Chart, the 20-day moving average is support at $8.25 with $9.18 3/4 the next level of resistance, which is the fresh high for the move Thursday morning with the Upper Bollinger Band at $9.17, above the market now. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.