DTN Midday Grain Comments 05/09 10:58

DTN Midday Grain Comments 05/09 10:58 Corn, Beans Lower, Wheat Higher at Midday Thursday Corn trade is 2 to 3 cents lower; beans are 15 to 16 cents lower and wheat trade is 7 to 10 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer at midday with the S&P 20 points higher. The dollar index is 25 points lower. The interest rate products are mixed. Energies have crude .25 cent higher and natural gas .10 cent higher. Livestock trade is mixed. Precious metals are firmer with gold up $20. CORN: Corn is 2 to 3 cents lower in quiet midday trade as we drift lower towards the WASDE report coming Friday along with spillover pressure from soybeans. Ethanol margins should get a boost from corn fading and unleaded finding footing but will need sustained better demand to drive greater production. Near-term weather should allow planting to pick back up into mid-month and boost emergence with all eyes on the mid-month forecast for the end of planting. On the report, trade is looking for old-crop carryout at 2.10 billion bushels and new crop at 2.284 billion bushels. The daily wire had 132,400 metric tons (mt) sold to Mexico with weekly sales solid at 889,200 mt of old crop, 49,100 of new. South America has seen little change in pattern short term with production estimates still easing for Argentina. On the July chart, the 20-day at $4.51 is nearby support with the fresh high at $4.72 the next level of resistance. SOYBEANS: Soybeans are 15 to 16 cents lower at midday with trade continuing to fade from the fresh highs as product momentum turns negative and we start to see pre-report long profit taking. Meal is $4.50 to $5.50 lower and oil is 95 to 105 points lower. South America should continue to expand exports as they battle through short flooding and labor unrest issues. On the report, trade is looking for old-crop carryout at 339 million metric tons (mmt) of old crop and 431 million of new. The daily wire was quiet again with weekly sales ok seasonally at 428,900 mt old, and 4,600 new with meal at 209,300 old, 19,200 new with oil strong at 11,600 old and 4,600 of new. The more open weather after the current system should help planting into mid-month. July soybean futures have resistance at the $12.56 fresh high. Chart support is at the 20-day moving average at $11.88. WHEAT: Wheat trade is 7 to 10 cents higher at midday with KC trade leading as we recoup Wednesday losses to stay in the middle of the recent range as we follow Euro values higher ahead of the report. The Plains should warm up a bit and dry after the recent storms with further moisture needed to finish, while Black Sea forecasts continue to be concerning as we move forward in the growing season. On the report, trade is looking for old crop carryout at 696 million bushels and 786 million of new crop. The dollar is fading again with MATIF wheat holding the upper end of the range. Weekly export sales improved at 41,100 mt old, and 406,000 of new crop. On the KC July chart, support is the 20-day at $6.23, with the fresh high at $6.79 as further resistance. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.