DTN Midday Grain Comments 05/17 10:53
17 May 2024
DTN Midday Grain Comments 05/17 10:53 Corn, Wheat Futures Lower at Midday; Soybeans Higher Corn futures are 2 to 3 cents lower at midday Friday; soybean futures are 6 to 7 cents higher; wheat futures are 6 to 8 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents lower at midday Friday; soybean futures are 6 to 7 cents higher; wheat futures are 6 to 8 cents lower. The U.S. stock market is mixed at midday with the S&P 2 points lower. The U.S. Dollar Index is narrowly mixed. The interest rate products are weaker. Energies have crude .30 higher and natural gas .10 higher. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold up 24.50. CORN: Corn futures are 2 to 3 cents lower at midday with trade fading through nearby support with little fresh news to entice bulls. Ethanol margins should get a boost from the corn pullback with unleaded holding the lower end of the range, but improved driving demand will need to continue. Planting should continue to progress ahead of the next system working through later in the weekend. South America has little fresh news with little change to the weather patterns for the second crop in Brazil in the short term. Basis action has been mostly sideways as fieldwork rolls on. On the July chart, the 20-day moving average at $4.57 is nearby support, which we are just below at midday with the fresh high at 4.75 1/2 the next level of resistance. SOYBEANS: Soybean futures are 6 to 7 cents higher at midday with broad product strength as trade continues to chop along above nearby support levels but giving back a little bit of the overnight strength. Meal is .50 to 1.50 higher and oil was 50 to 60 points higher with oil carving out a better level of support this week. South America will continue to battle short-term export impediments but overall the pace should continue to expand. Planting should run better ahead of the weekend systems. Basis should remain steady to softer until processers have better margins to encourage them. The July soybean futures have resistance at the $12.56 fresh high. Chart support is at the 20-day moving average at $12.03. WHEAT: Wheat futures are 6 to 8 cents lower at midday with trade fading yet again from overnight strength with immediate weather and political concerns easing again as longs take profit after the recent move. The Kansas wheat tour finished with the best estimates in three years, but still well below the recent high of 2021 at 46.6 bushels per acre (bpa). The Plains should see some continued showers especially to the east into the end of the month, while the Black Sea area will continue to see short-term dryness with some forecast improvement. The dollar is firming back off the lower end of the recent range with MATIF wheat trading sideways after Black Sea port attacks. On the KC July chart, support is the 20-day moving average at $6.53, with the fresh high $7.10 as resistance with the upper Bollinger Band at $7.06 just below that. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.