DTN Midday Grain Comments 05/09 10:51

DTN Midday Grain Comments 05/09 10:51 Corn, Beans Down Double Digits Midday Monday Corn trade is 13 to 16 cents lower; beans are 30 to 40 cents lower and wheat is 6 cents lower to 2 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is sharply lower with the Dow 580 points lower. The U.S. Dollar Index is 0.20 higher. Interest rate products are mostly higher. Energies are sharply lower with crude with crude $5.80 lower and natural gas off $0.70. Livestock trade is mostly lower with live cattle leading. Precious metals are mixed with gold down $24.70. CORN: Corn trade is 13 to 16 cents lower at midday with row crops continuing the downtrend from last week's close, a more open weather forecast and outside market weakness. The export wire has been quiet with trade looking for when value buyers start to show up. 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 head for the homestretch with mixed weather. Weekly export inspections softened a bit at 1.393 million metric tons, with weekly crop progress expected to show well behind average, with emergence slow as well, but next week's report likely to show bigger gains. On the July contract chart, we have resistance at the 20-day moving average at $7.94, which we have faded below Friday then the lower Bollinger Band at $7.65 as support. SOYBEANS: Soybean trade is 30 to 40 cents lower at midday with trade continuing to fade as product values retreat and better short-term field progress expected this week along with spillover pressure from energies. Meal is $9.50 to $10.50 lower and oil is 1.45 cents to 1.65 cents lower. The daily wire has been quiet with value buying slow in showing up. South American harvest is nearing completion with better corn planting this week to set the table for better soybean planting pace. New crop November continues to lose ground to corn short term as well with planting delays lessening the urgency of competition for now, which could change into mid-month. Weekly export inspections continue to soften at 503,414 metric ton, with planting and emergence well behind average still. On the July soybean chart, we have support at $15.78 on the fresh low as trade fades below the lower Bollinger Band at $16.07 with the 20-day well above the market at $16.67. WHEAT: Wheat trade is 6 cents lower to 2 cents higher with trade fading back from the initial surge higher with warmer weather returning to the Plains, and India crop estimates continuing to slide as row crop weakness weighs on the market during the day session. The dollar has rebounded, which could slow rallies if sustained, with choppy action at the highs seen in recent days. KC wheat is back to a 39-cent discount to Minneapolis in flat action, and at a 69-cent premium to Chicago, firming again Monday morning. Warmer weather returns to the Plains with recent rains, steady crop conditions and lagging maturity expected on the weekly report, while spring wheat falls further behind pace. Weekly export inspections softened at 236,847 metric tons. The KC July chart has support at the 20-day at $11.52, which we pushed above last week with the upper Bollinger Band at $12.07 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.