DTN Midday Grain Comments 05/21 10:48

DTN Midday Grain Comments 05/21 10:48 Corn, Soybean Futures Lower at Midday; Wheat Mixed Corn futures are 3 to 4 cents lower at midday Tuesday; soybean futures are 12 to 14 cents lower; wheat futures are narrowly mixed. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents lower at midday Tuesday; soybean futures are 12 to 14 cents lower; wheat futures are narrowly mixed. The U.S. stock market is firmer at midday with the S&P 5 points higher. The U.S. Dollar Index is flat. The interest rate products are firmer. Energies have crude .50 lower and natural gas .03 lower. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold off 5.50. CORN: Corn futures are 3 to 4 cents lower at midday with trade pulling back from Monday's gains after USDA's Crop Progress report showed enough planting progress to ease concerns along with the second week of the forecast looking better for development and the end of planting. Ethanol margins continue to see pressure with unleaded drifting lower, even with corn easing a bit. Planting will have to fight some more systems this week in the center and east of the belt before improvement is seen. Weekly crop progress showed 70% planted versus 71% on average with emergence at 40% versus 39% on average. The daily export wire had 110,000 metric tons (mt) of corn sold to Spain for old crop, and 113,050 mt sold to Mexico split 50/50 on old and new crop. South America has little fresh news with little change to the weather patterns for the second crop in Brazil for the short term with disease issues still lingering in Argentina. Basis action should continue to remain mostly sideways. On the July chart, the 20-day moving average at $4.58 is now nearby support after we closed back above it Monday but are testing it again at midday with the Upper Bollinger Band as resistance at $4.73. SOYBEANS: Soybean futures are 12 to 14 cents lower at midday with broad product weakness and a little better than expected planting progress helping trade to give back some of the Monday gains so far. Meal is 4.50 to 5.50 lower and oil is 45 to 55 points lower. South America will continue to battle short-term export impediments with flooding and strikes but overall the pace should continue to expand into summer. Planting will have to work around further systems next week with progress still ahead of the average at 52% versus 49% with emergence at 26% versus 21% on average. Basis should remain steady to softer until processers have better margins to encourage them. July soybean futures have resistance at the $12.56 fresh high. Chart support is at the 20-day moving average at $12.09. WHEAT: Wheat futures are narrowly mixed with light, two-sided action so far after trade tested the recent highs early in the session before easing a bit. Weather should drift back drier for the Plains into the end of the month with temps near average. The dollar is holding off the lows of the range with MATIF wheat just short of the recent highs in two-sided trade as well. Weekly crop progress showed heading at 69% versus 57% on average, with good to excellent down 1% to 49% and poor to very poor unchanged at 18%. Spring wheat is 79% planted versus 65% on average, and 43% emerged versus 33% on average. On the KC July chart, support is the 20-day moving average at $6.61, with the fresh high at $7.10 as resistance with the upper Bollinger Band at $7.05, which we are just below. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.