DTN Midday Grain Comments 05/25 10:51

DTN Midday Grain Comments 05/25 10:51 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 5 to 7 cents lower at midday Wednesday; soybean futures are 12 to 18 cents lower; wheat futures are 20 to 23 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the S&P up 20 points. The U.S. Dollar Index is 35 points higher. Interest rate products are firmer. Energies are mixed with crude down .25 and natural gas up .40. Livestock trade is mostly higher with front-month hogs leading. Precious metals are weaker with gold down 18.00. CORN: Corn futures are 6 to 8 cents lower at midday with trade fading into fresh lows for the move before firming back a bit toward midday with broad ag weakness on a lack of fresh bullish news and a weaker trend overall. The daily export wire has been quiet while basis shows some signs of life again in spots. The ethanol margins look to remain rangebound near term with the weekly report showing production up by 23,000 barrels per day (bpd), to two-month highs, with stocks down by 79,000 barrels getting us to four-month lows. The second crop in Brazil will head for the homestretch while the U.S. weather continues to keep moisture in much of the Corn Belt with cooler weather through midweek. On the July contract chart, we have resistance at the 20-day moving average at $7.92 with the lower Bollinger Band at $7.60 as support, which we bounced back from a test of early in the session. SOYBEANS: Soybean futures are 12 to 18 cents lower with soft spread action as trade follows the other ag comodities lower with little fresh bullish news and sliding product values to limit upside. Meal is $4.50 to $5.50 lower and oil is 95 to 115 points lower with meal struggling to hold the recent momentum. South America is moving toward post-harvest footing at this point. U.S. planting will remain sluggish with the expected moisture this week; cool down slows emergence until the second half of the week. Basis has held strength well at processors and exporters. On the July soybean chart, we are still solidly above the 20-day moving average at $16.53 with the upper Bollinger band at $17.23 the next round up. WHEAT: Wheat futures are 20 to 23 cents lower at midday with long liquidation continuing as trade fades into nearby support levels before bouncing somewhat with great hopes of European crop stabilization weatherwise and hopes for greater world export movement despite the ongoing Ukraine/Russia war with Russia offering grain for sanction reductions. The U.S. dollar is bouncing back a little as well. Warmer weather is expected to return later this week to push maturity again with spring wheat progress likely to continue to struggle. KC wheat is back to a 42-cent discount to Minneapolis in wider action, and at an 85-cent premium to Chicago, firming a bit. The KC July chart has resistance at the Upper Bollinger Band at $13.76, with the 20-day moving average well below the market at $12.15, which we are trading at currently with the lower Bollinger Band still well below current action at $10.50. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.