DTN Midday Grain Comments 05/03 10:50

DTN Midday Grain Comments 05/03 10:50 Corn, Wheat Futures Prices Lower at Midday; Soybeans Mixed Corn futures are 6 to 10 cents lower at midday Tuesday; soybean futures are 5 cents lower to 1 cents higher; wheat futures are 6 to 11 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the DOW 210 points higher. The U.S. Dollar Index is 40 points lower. Interest rate products are firmer. Energies are mixed with crude 1.90 lower and natural gas up .60. Livestock trade is mixed with cattle leading. Precious metals are firmer with gold up 12.00. CORN: Corn futures are 6 to 10 cents lower at midday with support from the lagging planting pace and firmer spread action early on giving way to selling with spillover from outside markets limiting upside as energies reverse lower. The export wire will be watched for fresh sales after last week's action with nothing to start the week. The 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. U.S. action likely to stay slow with warmer weather the second week likely to aid progress in many areas. Weekly crop progress showed planting at 14% versus 33% on average and the slowest pace since 2013, and 3% emerged versus 6% on average. On the July contract chart, we have support at the 20-day moving average at $7.87 with resistance at the new contract high of $8.24 1/2 printed Friday. SOYBEANS: Soybean futures are 5 cents lower to 1 cent higher with trade working to find footing after the Monday washout and little fresh bullish news for soybeans as product values fade. Meal is .50 to 1.50 higher and oil is flat to 10 points higher to start. Meal is back into the lows on the July contract, while oil is off being overbought after helping to fuel further profit-taking as energies pull back a touch. The daily export wire has been quiet to start this week. South American harvest will head for the homestretch with early planting not making significant progress last at 8% vs. 13% on average. New-crop November continues to lose ground to corn in the short term as well with planting delays lessening the urgency of competition for now. On the July soybean chart, we have resistance at the $16.68 20-day moving average, which we are solidly below at midday, then the lower Bollinger Band at $16.06. WHEAT: Wheat futures are 6 to 11 cents lower at midday with trade fading from early strength on condition declines and slow planting pace with little fresh news to move the market. The dollar is off the highs but remains elevated. 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 65-cent discount to Minneapolis narrowing today, and at a 46-cent premium to Chicago, narrowing over the last 7 days. Weekly crop progress showed heading at 23% versus 29% on average with good to excellent unchanged at 27% and poor to very poor 3% lower at 43%. Spring wheat planting was at 19% versus 28% on average and 5% emerged versus 7% on average. 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 $10.69 after we faded through $11.00 Monday, which becomes resistance as we failed to hold it so far today, then the 20-day moving average at $11.37 1/2. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.