DTN Midday Grain Comments 05/19 10:50

DTN Midday Grain Comments 05/19 10:50 Corn Futures Higher at Midday; Soybeans Flat-Higher; Wheat Flat-Lower Corn futures are 6 to 10 cents higher at midday Friday; soybean futures are flat to 5 cents higher; wheat futures are flat to 14 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 6 to 10 cents higher at midday Friday; soybean futures are flat to 5 cents higher; wheat futures are flat to 14 cents lower. The U.S. stock market is weaker with the S&P down 7 points. The U.S. Dollar Index is 50 points lower. Interest rate products are weaker. Energies are mixed with crude .20 lower and natural gas up .05. Livestock trade is weaker. Precious metals are firmer with gold up 18.00. CORN: Corn futures are 6 to 10 cents higher at midday with spread action firming. Trade is working to ease oversold conditions and finish the week on an upnote with trade fading off the early highs. Ethanol margins continue to improve, especially on the back end for fall and winter. 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 and good continued crop progress. 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; $5.47 is the fresh low with the lower Bollinger Band at $5.58 just below the midday action. SOYBEANS: Soybean futures are flat to 5 cents higher with trade fading off the early gains. Product momentum is slowing and short-covering becomes more limited as outside action turns more negative. Meal is flat to $1.00 higher and oil is 50 to 60 points higher. Basis will likely remain a little softer as fieldwork catches up more. Planting progress should move along well nationally with few short-term weather concerns. July chart support is the $13.25 area with the lower Bollinger Band above the market at $13.42. WHEAT: Wheat futures are flat to 14 cents lower with Chicago action leading as spread unwinding continues. The wheat tour wrapped up with poor yields and high abandonment. The idea is that most of that is priced in for now and spillover from outside markets is turning more negative. 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 keep popping up over the Plains to support what's left of the HRW crop the balance of the month while SRW should make good progress. The dollar fading should add some support with Matif wheat off the lows as well in European action. On the KC July chart, the 20-day moving average is support at $8.26 with $9.18 3/4 the next level of resistance, which is the fresh high for the move this week with the Upper Bollinger Band at $9.20 as well above the market now. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.