DTN Midday Grain Comments 05/12 10:45

DTN Midday Grain Comments 05/12 10:45 Corn, Wheat Futures Higher at Midday; Soybeans Mixed Corn futures are 1 to 4 cents higher at midday Thursday; soybean futures are narrowly mixed; wheat futures are 9 to 12 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is mixed with the S& P up 3 points. The U.S. Dollar Index is 60 points higher. Interest rate products are firmer. Energies are firmer with crude with crude 1.50 higher and natural gas up a penny. Livestock trade is weaker across the board. Precious metals are weaker with gold down 14.60. CORN: Corn futures are 1 to 4 cents higher with position-squaring ahead of the WASDE report at 11 a.m. CDT, along with outside spillover turning mixed after early pressure. On the WASDE report, new-crop corn is expected to show yield at 179.6 bushels per acre (bpa) with production at 14.773 billion bushels (bb) and carryout at 1.352 bb; old crop carryout is expected at 1.412 bb. Weekly export sales were a marketing year low at 192,700 metric tons (mt) of old crop and 46,600 mt of new. Ethanol margins will continue to be squeezed by input costs with soft driving demand and still burdensome stocks short term. 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 pace 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 $7.96, which we faded below last Friday, then the lower Bollinger band at $7.72 as support. SOYBEANS: Soybean futures are narrowly mixed at midday with meal trying to lead trade back from early weakness. Meal was $4.50 to $5.50 higher and oil is 35 to 55 points lower. The report is expected to show yield at 51.4 bpa for production of 4.613 bb, with carryout at 317 mb; old-crop carryout is expected at 225 million bushels (mb). Weekly export sales were a marketing year low at 143,700 mt of old crop and 77,300 of new; 181,900 of old meal, 16,100 of new meal; and 600 of oil. South American harvest is nearing completion. Better corn planting this week in the U.S. will set the table for better soybean planting pace. New-crop November continues to lose ground to corn in the short term as well with planting delays lessening the urgency of competition for now, which could change into mid-month if corn can catch up close to average pace. On the July soybean chart we have support at $15.78 on the fresh low with the lower Bollinger Band at $15.76 with the 20-day moving average well above the market at $16.58. WHEAT: Wheat futures are 9 to 12 cents higher at midday with KC and Minneapolis pressing into the highs in pre-report action with broad buying support. Weather will continue to be challenging in the short term for much of the Northern Hemisphere along with little change in action along the Black Sea. On the WASDE report, old-crop carryout is expected at 686 mb and new crop at 659 mb. KC wheat is back to a 56-cent discount to Minneapolis in flat action, and at an 88-cent premium to Chicago, holding at the high end of the range. Weekly export sales were a marketing year low at 14,100 mt old crop and 124,300 mt of new crop. The KC July chart has support at the 20-day moving average of $11.55 that we pushed above last week, with the Upper Bollinger Band at $12.14 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.