DTN Midday Grain Comments 05/25 11:12

DTN Midday Grain Comments 05/25 11:12 Corn, Wheat Futures Higher at Midday; Soybeans Lower Corn futures are flat to 4 cents higher at midday Thursday; soybean futures are 1 to 4 cents lower; wheat futures are 5 to 13 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 4 cents higher at midday Thursday; soybean futures are 1 to 4 cents lower; wheat futures are 5 to 13 cents higher. The U.S. stock market is mixed with the S&P up 25 points. The U.S. Dollar Index is 27 points higher. Interest rate products are weaker. Energies are weaker with crude 2.00 lower and natural gas off .06. Livestock trade is weaker. Precious metals are weaker with gold off 17.50. CORN: Corn futures are flat to 4 cents higher with firmer spread action again. Trade continues to press through resistance up front with short-term weather concerns lingering to the east, along with outside market headwinds. Ethanol margins should remain solid moving forward with blender margins narrowing a little Thursday as unleaded pulls back. Weekly export sales showed cancellations of 75,200 metric tons (mt) of old crop corn and sales of 52,100 mt of new crop. 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 to help finish after recent dryness. Planting progress should head for the homestretch in 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 have support at the 20-day moving average at $5.81 that we closed above Wednesday with the $6.00 area just above the market. SOYBEANS: Soybean futures are 5 to 13 cents lower with firmer spread action while meal limits the upside and oil adds support with negative spillover from outside. Meal is $2.50 to $3.50 lower and oil is 50 to 60 points higher. Weekly export sales remain soft at 115,000 mt of old crop; 1,100 mt of new; 341,300 of old meal and 50,600 of new crop; and 6,200 of oil showing some product life. 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, but rains will be wanted in many areas soon. July chart support is in the $13.00 area with the lower Bollinger Band just below that at $12.95 and the 20-day moving average still well above the market at $13.82. WHEAT: Wheat futures are 5 to 13 cents higher with KC action retaking the lead on spread action turning back stronger during the day session after the recent liquidation. Spring wheat areas should see better progress into next week with good moisture to aid emergence in the short term, along with heat as we try to catch up. Rains should keep popping up over the western Plains to guide the remaining acres to harvest, while SRW areas are drier for the most part. Weekly export sales showed old crop wheat cancellations of 45,100 mt and sales of 245,100 mt new. The dollar continues to hold the upper end of the range with Matif wheat showing a little strength. On the KC July Chart, the 20-day moving average is support is $8.00 area with trade back below at the 20-day moving average of $8.30 Thursday morning. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.