DTN Midday Grain Comments 05/24 11:02

DTN Midday Grain Comments 05/24 11:02 Corn, Soybean Futures Higher at Midday; Wheat Lower Corn futures are 6 to 8 cents higher at midday Wednesday; soybean futures are 3 to 8 cents higher; wheat futures are 7 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 6 to 8 cents higher at midday Wednesday; soybean futures are 3 to 8 cents higher; wheat futures are 7 to 18 cents lower. The U.S. stock market is weaker with the S&P off 30 points. The U.S. Dollar Index is 37 points higher. Interest rate products are mixed. Energies are firmer with crude 1.30 higher and natural gas up .04. Livestock trade is firmer. Precious metals are weaker with gold off 3.60. CORN: Corn futures are 6 to 8 cents higher with firmer spread action at midday. Contracts are pressing through the first resistance levels above the market Wednesday morning with short-term weather concerns and support from energies. Ethanol margins should remain solid coming forward with blender margins improving on unleaded strength. The weekly EIA report showed production 4,000 barrels per day (bpd) lower and stocks off by 1.15 million barrels ahead of Memorial Day travel. 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 and good continued crop progress with more rain possible this week to help finish after recent dryness. 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, which is catching some market attention. On the July chart we continue to have support at the $5.47 fresh low with the lower Bollinger Band at $5.54 just above that and the 20-day moving average at $5.81 the next round up, which we have pushed above at midday. SOYBEANS: Soybean futures are 3 to 8 cents higher at midday with trade finding buying during the day session after early weakness. Oil is leading the product complex with spillover strength from corn. Meal is $0.50 to $1.50 lower and oil is 65 to 75 points higher. Basis will likely remain a little softer as fieldwork catches up. Planting progress will likely continue to move along in the short term with warmer weather to boost emergence. July chart support is the $13.00 area with the lower Bollinger Band just above that at $13.02 with the 20-day moving average still well above the market at $13.85. WHEAT: Wheat futures are 7 to 18 cents lower at midday as Chicago leads action again with intramonth spreads flat to weaker as selling picks up during the day session. 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 guide the remaining acres to harvest; SRW areas are drier in the short term. The dollar continues to hold the upper end of the range with Matif wheat giving back Tuesday's gains. On the KC July Chart, the 20-day moving average is support in $8.00 area with trade back below the 20-day moving average of $8.29 at midday. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.