DTN Midday Grain Comments 05/22 11:05

DTN Midday Grain Comments 05/22 11:05 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 9 to 20 cents higher at midday Monday; soybean futures are 22 to 32 cents higher; wheat futures are 6 to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 9 to 20 cents higher at midday Monday; soybean futures are 22 to 32 cents higher; wheat futures are 6 to 8 cents higher. The U.S. stock market is mixed with the S&P up 7 points. The U.S. Dollar Index is 15 points higher. Interest rate products are weaker. Energies are mixed with crude .15 lower and natural gas down .20. Livestock trade is weaker. Precious metals are weaker with gold off 8.00. CORN: Corn futures are 9 to 20 cents higher with sharply firmer spread action as early two-sided action turned to broad short-covering with oversold conditions easing and trade looking toward Eastern Corn Belt weather in the short term. Ethanol margins should remain solid with better possibilities in the deferred. Trade is still worried about export cancellations. Weekly export inspections were solid at 1.323 million metric tons (mmt). Basis continues to hold a softer tone as fieldwork slows down to allow for better movement into June. The second crop in Brazil continues to make good progress and develop cheaper summer offers and good continued crop progress with more rain possible this week. Planting progress should head for the homestretch for most areas with warmer temps supporting emergence. The center and eastern parts of the Corn Belt are driest in the short term. Weekly crop progress should show planting and emergence solidly ahead of the 5-year average. On the July chart we continue to have support at the $5.47 fresh low with the lower Bollinger Band at $5.54, well below the midday action with the 20-day moving average at $5.84 the next round up. SOYBEANS: Soybean futures are 22 to 32 cents higher at midday with firming spread action and short-covering to start the week as we look to ease oversold conditions, while product action is led by oil at midday. Meal is $2.50 to $3.50 higher and oil is 100 to 115 points higher. The daily wire had some life Monday with the Philippines securing 225,000 metric tons of soy cake and meal. Weekly export inspections trended lower seasonally at 155,051 mt. 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. Weekly Crop Progress is expected to show planting and emergence well ahead of the 5-year average. July chart support is the $13.00 area with the lower Bollinger Band above the market at $13.18 with the 20-day moving average still well above the market at $13.95. WHEAT: Wheat futures are 6 to 8 cents higher with Chicago action still leading as spread unwinding continues with more positive spillover from row crops helping drag action back from the early weakness. 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 balance of the month while SRW should make good progress with early harvest coming soon. The dollar continues to hold the upper end of the range with Matif wheat holding the lows with little concern on European weather at the moment. Weekly export inspections improved a little bit at 407,682 mt. Weekly crop progress should show winter wheat conditions slightly better with heading ahead of normal. Spring wheat will likely have planting and emergence closer to average, but still trailing. On the KC July chart, the 20-day moving average is support at the $8.00 area with trade working right at the 20-day moving average of $8.24. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.