DTN Midday Grain Comments 05/06 10:48

DTN Midday Grain Comments 05/06 10:48 Corn, Soybean Futures Lower Midday Friday Corn trade is 8 to 14 cents lower; beans are 11 to 13 cents lower and wheat is flat to 12 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market has been mixed with the Dow 60 points lower. The U.S. Dollar Index is 0.50 lower. Interest rate products are mixed. Energies are mixed with crude with crude $2.60 higher and natural gas off $0.40. Livestock trade is mostly lower with feeder cattle leading. Precious metals are mixed with gold up $14.70. CORN: Corn trade is 8 to 14 cents lower at midday Friday with spread action remaining firm as the warmer near-term forecast looks to open more of a planting window. The export wire remained quiet all week as well. The ethanol margins will continue to be squeezed by input costs with soft driving demand, and still burdensome stocks into mid-May. The second crop in Brazil will continue to pollination with mixed weather. U.S. action is likely to stay slow with warmer weather after the weekend likely to aid progress in many areas. On the July contract chart, we have support at the 20-day moving average at $7.93, which we have faded below overnight then the lower Bollinger Band at $7.62 with resistance at the new contract high of $8.24 1/2 printed Friday. SOYBEANS: Soybean trade is 11 to 13 cents lower with trade still working back to the lower end of the recent range as product values grind lower, with oil fading further from the highs and meal at the low end of the recent range. Meal is flat to $1.00 lower, and oil is 0.95 cent to 1.05 cents lower. The daily wire has been quiet all week as well. South American harvest will head for the homestretch with early planting likely to stay slow short term. New crop November continues to lose ground to corn short term as well with planting delays lessening the urgency of competition for now. On the July soybean chart, we have resistance at the $16.70 20-day, which we are solidly below at midday, then the lower Bollinger Band at $16.20. WHEAT: Wheat trade is flat to 12 cents higher with trade firming back from the overnight lows and planting concerns remaining in the North, while drier weather returns to the Plains and mainland Europe to support Chicago action. The dollar has rebounded, which could slow rallies if sustained. KC wheat is back to a 35-cent discount to Minneapolis, and at a 59-cent premium to Chicago, narrowing back from the recent highs. Some winter wheat areas should see more rains with the more southern areas seeing stress as maturity still lags. The KC July chart has support at the 20-day at $11.48 that we pushed above Thursday, with the upper Bollinger Band at 12.03 1/2 as resistance near the recent highs. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.