DTN Midday Grain Comments 05/10 10:56

DTN Midday Grain Comments 05/10 10:56 Corn Mixed; Wheat and Beans Up Midday Tuesday Corn trade is narrowly mixed; beans are 5 to 6 cents higher and wheat is 4 to 10 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is lower after giving up early gains with the Dow 120 points lower. The U.S. Dollar Index is 0.25 higher. Interest rate products are higher. Energies are mixed with crude with crude $1.80 lower and natural gas up $0.25. Livestock trade is mostly lower with hogs leading. Precious metals are weaker with gold down $12.00. CORN: Corn trade is narrowly mixed with early strength fading to give way to two-sided action at midday Tuesday, with little fresh news. 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. Warmer and drier weather in much of the Corn Belt will boost planting in the U.S., along with emergence on planted acres. The weekly crop progress report showing 22% planted versus 50% on average and emergence at 5% versus 15% on average with much bigger gains expected next week. On the July contract chart, we have resistance at the 20-day moving average at $7.95, which we have faded below Friday then the lower Bollinger Band at $7.68 as support. SOYBEANS: Soybean trade is 5 to 6 cents higher at midday with weaker spread action as soybeans look to find short covering as we have washed into the lower end of the range along with oversold conditions. Meal is $1.00 to $2.00 lower and oil is 1.35 cents to 1.50 cents higher. 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. The weekly crop progress report showed planting at 12% versus 24% on average, and 3% emerged versus 4% on average. On the July soybean chart, we have support at $15.78 on the fresh low as trade fades below the lower Bollinger Band at $15.92 with the 20-day well above the market at $16.67 WHEAT: Wheat trade is 4 to 10 cents higher with trade working to consolidate after spillover pressure limited the ability to hold the Sunday night surge Monday, with support from world weather conditions as domestic conditions improved slightly with the recent rains along with a drier forecast again for the Plains. 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 45-cent discount to Minneapolis in soft action, and at a 74-cent premium to Chicago, with firmer midday action. Warmer weather returns to the plains with mixed recent rains with good to excellent up 2% on the week to 29% good to excellent, and 39% poor to very poor, and 33% headed versus 40% on average, while spring wheat is 27% planted versus 47% on average, and 9% emerged versus 15% on average with moisture remaining in the forecast for much of the growing areas. The KC July chart has support at the 20-day at $11.52 that we pushed above last week with the upper Bollinger Band at 12.06 3/4 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.