DTN Midday Grain Comments 05/02 10:58

DTN Midday Grain Comments 05/02 10:58 Corn, Soybean, Wheat Futures Prices All Lower at Midday Corn futures are 14 to 15 cents lower at midday Monday; soybean futures are 26 to 35 cents lower; wheat futures are 5 cents lower to 2 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the DOW 110 points lower. The U.S. Dollar Index is 70 points higher. Interest rate products are weaker. Energies are mixed with crude with crude 2.40 lower and natural gas up .20. Livestock trade is mostly higher with feeder cattle leading. Precious metals are weaker with gold down 52.00. CORN: Corn futures are 14 to 15 cents lower at midday, working back from the upper end of the range as better rains work into the drier areas. Trade is waiting to see how much fieldwork got done in the recent open window on the weekly Crop Progress report. There is also spillover weakness from soybeans and outside markets. There was nothing on the daily export wire today. Ethanol margins will continue to be squeezed by input costs with spring driving demand and slowly sliding stocks to provide support into summer. The second crop in Brazil will continue on to pollination with mixed weather. The north should open a bit this week for planting in the U.S., with the southern growing areas seeing better showers. The weekly Crop Progress report should show planting and emergence still a touch behind average with weekly export inspections solid again at 1.684 million metric tons (mmt). On the July contract chart, we have support at the 20-day moving average at $7.84 with resistance at the new contract high of $8.24 1/2 printed Friday. SOYBEANS: Soybean futures are 26 to 35 cents lower at midday with trade fading away from $17.00 nearby, and $15.00 on new crop with broad product weakness and little fresh news otherwise to support trade. Meal is $4.50 to $5.50 lower and oil is 295 to 325 points lower. Meal is back into the lows on the July contract, while oil remains overbought, helping to fuel further profit-taking as energies pull back. The daily export wire was quiet to start the week, with export inspections rangebound at 601,282 metric tons (mt). South American harvest will head for the homestretch with early planting picking up steam with planting progress likely close to average today. New-crop November continues to lose ground to corn in the short-term as well. On the July soybean chart we have resistance at the Upper Bollinger band at $17.43. Support is at the $16.66 20-day moving average, which we are below at midday, then the lower Bollinger Band at $15.96. WHEAT: Wheat futures are 2 cents higher to 5 cents lower with improvement expected for some areas of the Plains after recent storms, while spring wheat growing areas will need better drying for quicker planting progress with less short-term rain on tap. The dollar is back higher to limit upside as well. Little change is expected in the Black Sea region for now with Middle East tenders still slow in developing as Turkey canceled some over the weekend. KC wheat is back to a 69-cent discount to Minneapolis, widening significantly again, and at a 49-cent premium to Chicago, narrowing over the last seven days. Weekly crop progress is expected to show steady to slightly better winter wheat conditions with maturity behind normal, and spring wheat falling further from the average pace. Some winter wheat areas should see more rains this area with the more southern areas seeing more stress. The KC July chart has support at the lower Bollinger Band at $10.54 after we faded through $11.00 overnight. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.