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DTN Midday Grain Comments 05/20 10:51

20 May 2024
DTN Midday Grain Comments 05/20 10:51 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 8 to 9 cents higher at midday Monday; soybean futures are 12 to 14 cents higher; wheat futures are 26 to 36 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 8 to 9 cents higher at midday Monday; soybean futures are 12 to 14 cents higher; wheat futures are 26 to 36 cents higher. The U.S. stock market is firmer at midday with the S&P 20 points higher. The U.S. Dollar Index is 11 points higher. The interest rate products are weaker. Energies have crude a dime lower and natural gas a dime higher. Livestock trade is mixed. Precious metals are firmer with gold up 11.50. CORN: Corn futures are 8 to 9 cents higher to start the week with good spillover support from wheat and positioning ahead of USDA's Crop Progress report with all eyes on planting progress and forecasts coming forward. Ethanol margins are seeing pressure with corn rebounding and little change to unleaded. Planting should have made better progress reported into Sunday with the weekly progress report likely to show planting still below the 5-year average and emergence still in line. Weekly export inspections were solid at 1.211 million metric tons (mmt). 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 for the month of May. On the July chart the 20-day moving average at $4.57 is now nearby resistance, which we are back above at midday with the lower Bollinger Band as support at $4.41. SOYBEANS: Soybean futures are 12 to 14 cents higher at midday after early two-sided action with broad product strength and planting concerns helping to lead us. Meal is 2.00 to 3.00 higher and oil is 95 to 105 points higher. South America will continue to battle short-term export impediments with flooding and strikes but, overall, the pace should continue to expand. Weekly export inspections were at marketing year low at 184,128 metric tons (mt). Planting should run better ahead of the weekend weather systems with the weekly report expected to be at the 5-year average with emergence just ahead. 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 $12.06. WHEAT: Wheat futures are 26 to 36 cents higher with overnight strength turning to bigger buying during the day session as euro values rebound with drier weather in the Black Sea toward the end of the month. 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). Further weather systems worked through the area Sunday with high winds and heavy rains. The dollar is firming back off the lower end of the recent range with MATIF wheat just short of the recent highs in sharply higher action. Weekly export inspections were soft at 205,612 mt, the lowest since November. Weekly crop progress is likely to show steady conditions and heading well ahead of normal with spring wheat planting and emergence well ahead of the 5-year average. On the KC July chart support is the 20-day moving average at $6.56, with the fresh high at $7.10 as resistance with the upper Bollinger Band at $6.99 just below that, which we are just below at midday. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.
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