DTN Midday Grain Comments 05/31 10:46

DTN Midday Grain Comments 05/31 10:46 Corn, Wheat Futures Lower at Midday; Soybean Mixed Corn trade is flat to 2 cents lower; beans are narrowly mixed and wheat trade is 3 to 5 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is flat to 2 cents lower; beans are narrowly mixed and wheat trade is 3 to 5 cents lower. The U.S. stock market is mixed at midday with the S&P 500 25 points lower. The dollar index is 2 points lower. The interest rate products are firmer. Energies have crude .70 lower and natural gas .02 lower. Livestock trade is weaker with cattle being the downside leader. Precious metals are weaker with gold off 14.00. CORN: Corn futures are flat to 2 cents lower with early gains fading again with trade back to testing support at the lower end of the range as we drift towards the end of the month. Ethanol margins should remain stable with corn and unleaded weaker and driving demand cooling out of the Holiday weekend. Storms will likely slow the tail end of planting as they work through today with a more open forecast into next week with some areas of very heavy rain. South America is expected to see little short-term change as we get deeper into the growing season for double-crop corn. Basis action should continue to remain mostly sideways. Weekly export sales remained in line with recent weeks with 810,100 metric tons of old crop, and 187,800 of new. On the July chart, the 20-day at $4.61 is now resistance after we faded below it earlier in the week with the Lower Bollinger Band as support at $4.48 which we are testing midday. SOYBEANS: Soybean futures are narrowly mixed at midday with early strength fading as well with meal holding together the best so far. Meal is narrowly mixed and oil is 30 to 40 points lower. South America should be able to push more bushels into export channels coming into June as the recent issues resolve themselves into June. The daily wire remained quiet with weekly sales showing improvement in products with 329,400 metric tons of old crop beans, 6,900 of new crop, 265,500 of old crop meal and 20,500 of new, and 10,200 of oil. Planting should be set for a better finish as the forecast opens up into the first week of June after today's rains with some crusting of topsoil in the heavier rained areas. Basis should remain steady short term with little change to crush margins. The July Chart resistance is at the 20-day moving average at $12.27 which we faded through midweek then the 12.00 area nearby as support. WHEAT: Wheat futures are 3 to 5 cents lower at midday with early buying fading again with profit taking likely into the end of the month with world prices easing as well. Weather looks to remain on the wetter side short term to slow early plains harvest but we should remain ahead of the average development pace. The dollar is back to the middle of the range with MATIF milling wheat falling off the upper end of the range again. The short-term forecast shows little change for the Black Sea growing areas which should limit the downside short term. Weekly export sales were in line with recent weeks with -60,900 metric tons of old crop as the marketing year wraps up, and 381,700 of new. On the KC July Chart support is the 20-day at $6.88, with the fresh high as 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.