DTN Midday Grain Comments 05/13 11:02

DTN Midday Grain Comments 05/13 11:02 Soybean Futures Higher at Midday; Corn, Wheat Lower Corn futures are 5 to 11 cents lower at midday Friday; soybean futures are 12 to 21 cents higher; wheat futures are 3 to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 11 cents lower at midday Friday; soybean futures are 12 to 21 cents higher; wheat futures are 3 to 9 cents lower. The U.S. stock market is firmer with the S&P up 90 points. The U.S. Dollar Index is 40 points lower. Interest rate products are weaker. Energies are mixed with crude 3.50 higher and natural gas down .20. Livestock trade is mostly higher. Precious metals are mixed with gold down 13.20. CORN: Corn futures are 5 to 11 cents lower with trade fading from early overnight gains after the post-report surge. On the report Thursday, new-crop yield was at 177.0 bushels per acre (bpa) versus 179.6 bpa expected with new-crop carryout at 1.36 billion bushels (bb) versus 1.315 bb expected; old crop was unchanged at 1.440 bb. South American production was unchanged and world stocks edged higher on reduced demand expectations. The 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 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 have been unable to push above, then the lower Bollinger band at $7.72 as support. SOYBEANS: Soybean futures are 12 to 21 cents higher at midday with trade still working in the lower end of the range. Better short-covering is developing as meal finally holds early strength. Meal $6.50 to $7.50 higher and oil is 85 to 100 points higher. The report pegged new-crop yield at 51.5 bpa, .1 above the average guess, with carryout at 310 million bushels (mb), as expected. Old-crop carryout was at 235 mb versus 221 mb expcted and 260 mb last month with world stocks a bit lower on old crop, and a bit higher on new crop. 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, 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. The USDA announced 132,000 metric tons (mt) of old-crop soybeans sold to China. 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 $16.56. WHEAT: Wheat futures are 3 to 9 cents lower at midday with trade fading from the fresh highs scored overnight after the limit-higher move post report as carryouts declined along with production on the report along with weather concerns continuing to persist. On the report all wheat productions was 1.729 bb versus 1.791 bb expected with old-crop carryout at 655 mb versus 684 mb expected, and new at 619 mb versus 651 mb expected. 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. KC wheat is back to a 58-cent discount to Minneapolis in flat action, and at a 98-cent premium to Chicago, at the high end of the range. The KC July chart has support at the fresh high at $12.92, with support the upper Bollinger Band at $12.54 with the 20-day moving average well below the market at $11.64. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.