DTN Midday Grain Comments 05/26 11:04

DTN Midday Grain Comments 05/26 11:04 Soybean, Wheat Futures Higher at Midday; Corn Mixed Soybean futures are 31 to 45 cents higher at midday Thursday; wheat futures are 9 to 19 cents higher; corn futures are 3 cents lower to 2 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Soybean futures are 31 to 45 cents higher at midday Thursday; wheat futures are 9 to 19 cents higher; corn futures are 3 cents lower to 2 cents higher. The U.S. stock market is firmer with the S&P up 70 points. The U.S. Dollar Index is 20 points lower. Interest rate products are weaker. Energies are firmer with crude up 3.80 and natural gas up .30. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold down 1.50. CORN: Corn futures are 3 cents lower to 2 cents higher with softer spread action as trade faded back to the lower end of the range again, before firming back off the lows as soybeans lead trade higher. The daily export wire has been quiet while basis shows some signs of life again in spots. Weekly export sales were disappointing at 151,600 metric tons (mt) of old-crop corn and 58,300 mt of new. Ethanol margins look to remain rangebound near term with the bounce in unleaded to support blending. The second crop in Brazil will head for the homestretch while U.S. weather continues to keep moisture in much of the Corn Belt with warmer weather into the weekend. On the July contract chart, we have resistance at the 20-day moving average at $7.87 with the lower Bollinger Band at $7.60 as support, which we tested again overnight with the fresh low at $7.55 below that. SOYBEANS: Soybean futures are 31 to 45 cents higher at midday after early weakness as strong spread action supports ideas of nearby demand. Meal is $7.00 to $8.00 higher, and oil is 175 to 185 points higher. South America is moving toward post-harvest footing at this point, with planting to remain sluggish with the expected moisture this week with the warmer temps to help progress into the weekend. Basis has held strength well at processors and exporters. Weekly export sales were soft at 276,800 mt of old crop and 443,000 mt of new; meal was 159,600 mt old and 58,300 mt of new; and 6,200 of oil. On the July soybean chart, we are still solidly above the 20-day moving average at $16.52 with the upper Bollinger band at $17.21 the next round up, which we are trying to push through at midday. WHEAT: Wheat futures are 9 to 19 cents higher at midday with spring wheat leading as volatile action continues with trade bouncing a bit off the overnight lows again, keeping the day rallies intact. Russia has allowed limited transit out of Mariupol, but we remain a ways off from serious progress in opening more ports with weather stabilizing in Europe. The dollar remains fairly rangebound. Warmer weather is expected to return soon to push maturity again with spring wheat progress likely to continue to struggle. KC wheat is back to a 56-cent discount to Minneapolis in wider action, and at an 88-cent premium to Chicago, firming a bit. Weekly export sales were disappointing at -2,300 mt of old crop and 246,300 mt of new. The KC July chart has resistance at the Upper Bollinger Band at $13.83, with the 20-day moving average at $12.17, which we tested again, and the low at $11.92 becoming further support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.