DTN Midday Grain Comments 05/04 10:50

DTN Midday Grain Comments 05/04 10:50 Wheat Futures Higher at Midday; Corn, Soybeans Mixed Corn futures are 2 cents lower to 4 cents higher at midday Wednesday; soybean futures are 1 cent lower to 5 cents higher; wheat futures are 21 to 29 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the DOW 70 points lower. The U.S. Dollar Index is 20 points lower. Interest rate products are weaker. Energies are firmer with crude 3.45 higher and natural gas up .35. Livestock trade is mostly higher with hogs leading. Precious metals are mixed with gold off 3.20. CORN: Corn futures are 2 cents lower to 4 cents higher at midday with strong spread action as the forecast shows little change and wheat action surges higher to provide spillover support, although trade was unable to hold the early highs. The daily export wire has been quiet so far this week. Ethanol margins will continue to be squeezed by input costs with spring driving demand and slowly sliding stocks to provide support into summer. The weekly report showed ethanol production 6,000 barrels per day (bpd) higher and stocks 78,000 barrels lower. The second crop in Brazil will continue on to pollination with mixed weather. U.S. action is likely to stay slow with warmer weather the second week likely to aid progress in many areas. On the July contract chart, we have support at the 20-day moving average at $7.89 with resistance at the new contract high of $8.24 1/2 printed Friday. SOYBEANS: Soybean futures are 1 cent lower to 5 cents higher at midday with trade still working to build support after the washout to start the week with two-sided action so far Wednesday. Meal is $2.50 to $3.50 lower and oil is 150 to 160 points higher. Meal remains near the recent lows, with oil working to rebuild momentum, and still trading solidly off the highs. The daily export wire remained quiet. South American harvest will head for the homestretch with early planting likely to stay slow in the short term. New-crop November continues to lose ground to corn 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 $16.09. WHEAT: Wheat futures are 21 to 29 cents higher at midday with export restrictions likely by India, further tightening the world situation with little change elsewhere. The dollar is off the highs but remains elevated to provide some headwind to U.S. origin. KC wheat is back to a 58-cent discount to Minneapolis, narrowing a nickel so far, and at a 45-cent premium to Chicago, narrowing over the last seven days. Some winter wheat areas should see more rains with the more southern areas seeing more stress as maturity still lags. The KC July chart has support at the lower Bollinger Band at $10.69 after we faded through $11.00 Monday, but we have reversed above Wednesday morning, then the 20-day moving average at $11.37 1/2 as the next level of resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.