DTN Midday Grain Comments 05/23 10:57

DTN Midday Grain Comments 05/23 10:57 Corn, Wheat Futures Higher at Midday; Soybeans Lower Corn futures are 4 to 5 cents higher at midday Tuesday; soybean futures are 9 to 18 cents lower; wheat futures are 13 to 18 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 5 cents higher at midday Tuesday; soybean futures are 9 to 18 cents lower; wheat futures are 13 to 18 cents higher. The U.S. stock market is mixed with the S&P off 9 points. The U.S. Dollar Index is 30 points higher. Interest rate products are weaker. Energies are mostly higher with crude 1.15 higher and natural gas off .02. Livestock trade is mostly weaker. Precious metals are weaker with gold off 10.00. CORN: Corn futures are 4 to 5 cents higher at midday with early two-sided action turning stronger. Lightly weaker spread action is noted with positive spillover from wheat to help support the strength. Ethanol margins should remain solid with better possibilities in the deferred along with rising unleaded values boosting blender margins. Basis continues to hold a softer tone as fieldwork slows to allow for better movement into June. The second crop in Brazil continues to make good progress and develop cheaper summer offers with good crop progress and more rain possible this week. Planting progress should head for the homestretch for most areas with warmer temps supporting emergence with the center and eastern parts of the Corn Belt driest in the short term. Weekly crop progress showed planting at 81% complete versus 75% on average, with 52% emerged versus 45% on 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 $5.82 the next round up. SOYBEANS: Soybean futures are 9 to 18 cents lower with trade unable to build on Monday's gains with product values leading action back lower. Meal is $2.50 to $3.50 lower and oil is 80 to 100 points lower. Basis will likely remain a little softer as fieldwork catches up. Planting progress should move along well nationally with few short-term weather concerns. Weekly crop progress showed planting at 66% versus 52% on average, and emergence at 36% versus 24% on average. July chart support is the $13.00 area with the lower Bollinger Band above the market at $13.15 with the 20-day moving average still well above the market at $13.90. WHEAT: Wheat futures are 13 to 18 cents higher with Minneapolis taking the lead at midday as trade works back towards the middle of the recent range. The late-week spread washout looks to have ran its course. 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 western 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 solidly higher Tuesday. Weekly export inspections improved a little bit at 407,682 metric tons. Weekly crop progress showed heading at 61%, same as average, with poor to very poor at 40% and good to excellent 31%, slightly better on the week. Spring wheat was 64% planted versus 73% on average, and 32% emerged versus 40% on average, but still trailing. On the KC July Chart, the 20-day moving average is support is $8.00 area with trade solidly above at the 20-day moving average of $8.26 after closing there Monday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.