DTN Midday Grain Comments 05/11 10:54

DTN Midday Grain Comments 05/11 10:54 Corn, Soybean, Wheat Futures Prices Higher at Midday Corn futures are 8 to 10 cents higher at midday Wednesday; soybean futures are 10 to 15 cents higher; wheat futures are 13 to 22 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the S&P up 26 points. The U.S. Dollar Index is 20 points lower. Interest rate products are mixed. Energies are firmer with crude 5.00 higher and natural gas up .25. Livestock trade is mostly lower with live cattle leading. Precious metals are firmer with gold up 9.60. CORN: Corn futures are 8 to 10 cents higher at midday with trade seeing light buying as we start to see position squaring ahead of the WASDE report Thursday, along with positive outside markets spillover. On the report Thursday, new-crop corn is expected to show yield at 179.6 bushels per acre (bpa) for production at 14.773 billion bushels (bb) and carryout at 1.352 bb; old crop is expected at a 1.412 bb carryout. The daily export wire has been quiet this week with trade looking for when value buyers start to show up. Ethanol margins will continue to be squeezed by input costs with soft driving demand and still burdensome stocks into mid-May. Production edged 22,000 barrels per day (bpd) higher, with stocks up 253,000 barrels, keeping stocks burdensome. 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. On the July contract chart, we have resistance at the 20-day moving average at $7.95, then the lower Bollinger band at $7.70 as support. SOYBEANS: Soybean futures are 10 to 15 cents higher with trade finding buying at the low end of the range with flat spread action and slow product action ahead of the report Thursday. Meal is $1.00 to $2.00 lower and oil is 150 to 170 points higher. The report is expected to show yield at 51.4 bpa for production of 4.613 bb, with carryout at 317 million bushels (mb); old-crop carryout is expected at 225 mb. The daily export wire has been quiet with value buying slow in showing up here as well. 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 in the short term as well as with planting delays lessening the urgency of competition for now, which could change into mid-month. On the July soybean chart, we have support at $15.78 on the fresh low as trade works back above the lower Bollinger Band at $15.84 with the 20-day moving average well above the market at $16.60. WHEAT: Wheat futures are 13 to 22 cents higher at midday with trade pushing back towards the recent highs with world and Plains weather concerns short term with the warmer weather, while spring wheat planting will remain slow. The dollar remains at the upper end of the range as well. On the report, trade is expecting old-crop carryout at 686 mb and new crop at 659 mb. KC wheat is back to a 46-cent discount to Minneapolis in firm action, and at an 86-cent premium to Chicago, holding at the high end of the range. The KC July chart has support at the 20-day moving average at $11.53 that we pushed above last week, with the Upper Bollinger Band at $12.08 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.