DTN Midday Grain Comments 05/13 10:55

DTN Midday Grain Comments 05/13 10:55 Corns, Bean, Wheat Higher at Midday Monday Corn trade is 3 to 4 cents higher; beans are 7 to 9 cents higher and wheat trade is 15 to 21 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed at midday with the S&P 2 points lower. The dollar index is 10 points lower. The interest rate products are firmer. Energies have crude .70 cent higher and natural gas up .07 cent. Livestock trade is mostly higher. Precious metals are off with gold off $32.50. CORN: Corn is 3 to 4 cents higher at midday with trade pressing into fresh highs as we extend Friday's gains with positive spillover support from wheat along with short-term weather concerns. On the report, trade saw old-crop carryout at 2.022 billion bushels versus 2.090 expected, and new crop at 2.102 billion versus 2.287 expected on yield at 181.0 BPA. Brazil and Argentina production edged lower, with world stocks at 313.1 million metric tons versus 314.7 expected. Ethanol margins will see further pressure if corn holds the upper end of the range with the uptick in demand needed to support blender margins. Near-term weather will likely slow planting short term with the weekly report likely to show progress a bit behind the five-year average with emergence in line with the average. The daily wire was quiet to start the week with weekly inspections a bit softer at 937,239 metric tons. South America has little fresh news after the recent fall in production expectations. On the July chart, the 20-day at $4.53 is nearby support with the fresh high at 4.74 3/4 the next level of resistance which we are just below at midday. SOYBEANS: Soybeans are 7 to 9 cents higher at midday with better action during the day session as trade follows the lead of corn and wheat to press back toward the upper end of the range. Meal is .50 cent to 1.50 cents lower and oil is 70 to 80 points higher. On the report, old crop carryout was 340 million bushels versus 339 expected, and new crop at 445 million versus 435 expected, and world stocks were 111.8 million metric tons versus 112.0 expected with Argentina and Brazil production slightly lower. South America should continue to expand exports once Brazil's flooding eases and Argentina's harvest hits full stride. The daily wire was quiet today with weekly export inspections rangebound at 406,052 metric tons. Planting will be slowed by early-week systems again with the weekly report likely to show planting near the five-year average with emergence just above the average. July soybean futures have resistance at the $12.56 fresh high. Chart support is at the 20-day moving average at $11.91. WHEAT: Wheat trade is 15 to 21 cents higher at midday with early two-sided action giving way to fresh highs as the day session got rolling with U.S. action following the lead of Euro prices. On the report, old-crop carryout was 688 million bushels versus 695 million expected, and new crop at 766 million versus 777 expected, while world stocks were 257.8 million versus 257.1 expected. The Plains should mostly have OK near-term moisture with temperatures around average, while the Black Sea area continues to struggle with cold in some areas and dryness in others. The weekly export inspections were range-bound at 366,339 metric tons with steady conditions on weekly crop progress with heading expected to be still solidly ahead of average, while spring wheat planting and emergence should remain ahead of average. The dollar is holding the recent range with MATIF wheat scoring fresh highs as well. On the KC July chart, support is the 20-day at $6.22, with the fresh high at 6.96 1/2 then the Upper Bollinger Band at 7.02 as 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.