DTN Midday Grain Comments 05/28 10:57

DTN Midday Grain Comments 05/28 10:57 Corn, Soybean Futures Lower at Midday; Wheat Higher Corn futures are 2 to 3 cents lower at midday Tuesday; soybean futures are 16 to 19 cents lower; wheat futures are 2 to 7 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents lower at midday Tuesday; soybean futures are 16 to 19 cents lower; wheat futures are 2 to 7 cents higher. The U.S. stock market is mixed at midday with the S&P 4 points higher. The U.S. Dollar Index is 25 lower. The interest rate products are weaker. Energies have crude 1.90 higher and natural gas unchanged. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold 24.00 higher. CORN: Corn futures are 2 to 3 cents lower at midday with trade fading back off the test of the upper end of range seen initially overnight as wheat fades from fresh highs and soybeans turn lower out of the long weekend. Ethanol margins are getting a boost from the corn pullback with unleaded firming out of the holiday weekend. Planting will head to the homestretch with some areas still plenty wet. Weekly Crop Progress is expected to show planting just below the 5-year average with emergence right at average. Conditions reports start next week. The daily export wire showed 210,000 metric tons (mt) split between old- and new-crop to Mexico. Weekly export inspections were in line with recent weeks at 1.077 million metric tons (mmt). South America should continue to see the double-crop areas in Brazil dry out in the short term. Basis action should continue to remain mostly sideways. On the July chart, the 20-day moving average at $4.61 is support, which we are testing at midday, with the Upper Bollinger Band as resistance at $4.73. SOYBEANS: Soybean futures are 16 to 19 cents lower at midday with trade reversing off the top of the range after early strength as meal values slide after the short squeeze to end last week. Meal is 11.00 to 12.00 lower and oil is 70 to 80 points higher. South America should be able to push more bushels into export channels coming into June after the recent difficulties with U.S. export rumors from last week still unconfirmed. Weekly export inspections remained rangebound at 212,105 metric tons (mt). Planting should be set for a better finish as the forecast opens up into the first week of June with more rains this week to limit gains in some areas. Weekly planting progress is expected near the 5-year average with emergence still just ahead of pace. Basis should remain steady with crush margins still needing improvement to drive better run rates. The July soybean futures have resistance at the $12.58 1/2 fresh high from last week. Chart support is at the 20-day moving average at $12.22. WHEAT: Wheat futures are 2 to 7 cents higher at midday with trade gaping higher after further downgrades to Black Sea area wheat expectations and strong Euro wheat trade on Monday before action faded back from the overnight highs during the day session. Weather looks to be wet for the Southern Plains in the short term with early harvest likely to be slowed a bit. But northern areas should get more rain to finish the crop. Weekly crop progress is expected to show slightly lower conditions with heading still well above average with spring wheat well ahead of average on planting and emergence. Weekly export inspections improved a little at 398,904 mt. The dollar remains rangebound with MATIF wheat giving back a good chunk of Monday's gains heading toward the end of their session. The short-term forecast shows little change for the Black Sea growing areas, which should boost support. On the KC July chart, support is the 20-day moving average at $6.75, with the fresh high $7.46 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.