DTN Midday Grain Comments 05/29 10:55

DTN Midday Grain Comments 05/29 10:55 Corn, Soybean Futures Lower at Midday; Wheat Mixed Corn futures are 1 to 2 cents lower at midday Wednesday; soybean futures are 11 to 13 cents lower; wheat futures are narrowly mixed. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents lower at midday Wednesday; soybean futures are 11 to 13 cents lower; wheat futures are narrowly mixed. The U.S. stock market is weaker at midday with the S&P 35 points lower. The U.S. Dollar Index is 40 points higher. The interest rate products are weaker. Energies have crude .40 lower and natural gas 12 lower. Livestock trade is weaker with cattle breaking sharply lower. Precious metals are mixed with gold 16.00 lower. CORN: Corn futures are 1 to 2 cents lower at midday with trade settling into nearby support levels after planting progress came in just ahead of the 5-year average with little other fresh news to drive trade so far Wednesday. Ethanol margins will continue to struggle with unleaded fading again while corn remains rangebound. Planting will head to the homestretch with some areas still plenty wet. The weekly Crop Progress report showed planting 83% complete versus 82% on average with 58% emerged, same as average. South America is expected to see little short-term change for the drier double-crop areas. Basis action should continue to remain mostly sideways. On the July chart, the 20-day moving average at $4.61 is support, which we have edged below at midday, with the Upper Bollinger Band as resistance at $4.73. SOYBEANS: Soybean futures are 11 to 13 cents lower at midday with trade fading back to support levels nearby with the pullback in meal continuing as there is little on the weather front to excite buyers for the moment. Meal is 5.00 to 6.00 lower and oil is 25 to 35 points higher. South America should be able to push more bushels into export channels coming into June as they work through post-harvest flooding and labor issues. Planting should be set for a better finish as the forecast opens up into the first week of June. Weekly crop progress showed 68% planted versus 63% on average with 39% emerged versus 36% on average. 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, which we are testing at midday. WHEAT: Wheat futures are narrowly mixed at midday with active two-sided trade so far as we rebound from overnight selling to consolidate the upper end of the range further. 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 showed 48% good to excellent and 19% poor to very poor, off 1%, with 77% headed versus 69% on average; spring wheat was 88% planted versus 81% on average with 61% emerged versus 52% on average. The dollar is firming a bit with MATIF milling wheat trading just short of the highs. The short-term forecast shows little change for the Black Sea growing areas, which should limit downside in the short term as well. On the KC July chart, support is the 20-day moving average at $6.80, with the fresh high at $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.