DTN Midday Grain Comments 05/31 11:12

DTN Midday Grain Comments 05/31 11:12 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 18 to 23 cents lower at midday Tuesday; soybean futures are 22 to 35 cents lower; wheat futures are 45 to 62 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 18 to 23 cents lower at midday Tuesday; soybean futures are 22 to 35 cents lower; wheat futures are 45 to 62 cents lower. The U.S. stock market is weaker with the S&P down 25 points. The U.S. Dollar Index is 55 points firmer. Interest rate products are weaker. Energies are mixed with crude up 2.30 and natural gas down .15. Livestock trade is mixed with feeder cattle positive. Precious metals are weaker with gold down 13.50. CORN: Corn futures are 18 to 23 cents lower with weaker spread action as we return from the long weekend. Day session weakness is accelerating with spillover from soybeans reversing and wheat sliding. The daily export wire has been quiet while basis has flattened out again. Weekly export inspections remain solid at 1.391 million metric tons (mmt) inspected. Ethanol margins look to remain rangebound near term with the bounce in unleaded to support blending margins as we get past Memorial Day weekend demand. The second crop in Brazil will head for the homestretch while U.S. weather continues to keep moisture in much of the belt with cooler than normal temperatures to linger in the north. The weekly USDA Crop Progress report is expected to show planting still well behind average, along with emergence, while the first condition report should show good ratings on the emerged acres. On the July contract chart, we have resistance at the 20-day moving average at $7.84 with the lower Bollinger Band at $7.60 as support, which we are below at midday, and the fresh low at $7.52 3/4 below that. SOYBEANS: Soybean futures are 22 to 35 cents lower at midday with softer spread action as trade backs away from the fresh highs scored overnight with broad profit-taking to end the month and over-bought conditions ahead of the crop progress report this afternoon. Meal is $13.00 to $14.00 lower, and oil is 75 to 85 points lower. South America is moving toward post-harvest footing at this point. In the U.S., planting will remain sluggish with the expected moisture this week in the north with sustained warmer temps needed to boost emergence. Basis has held strength well at processors and exporters with signs of better movement with the export wire quiet. The weekly export inspections were within the recent range at 378,262 metric tons (mt). On the July soybean chart, we are still solidly above the 20-day moving average at $16.61 with the fresh high and the Upper Bollinger Band well above current action at $17.49 3/4. WHEAT: Wheat futures are 45 to 62 cents lower at midday with improved forecasts for Continental Europe helping to pull weather premium out of the market with little change to the political situation as well as month-end profit-taking. Early harvest in the U.S. will spread with weak yields expected to start with conditions steady on the weekly report while spring wheat will continue to lag on planting and emergence. The U.S. dollar is bouncing back from the recent lows. Warmer weather on the Plains should help maturity, while the north will continue to be exceptionally wet. Weekly export inspections remained rangebound at 343,927 mt. KC wheat is back to an 84-cent discount to Minneapolis in wider action, and at an 84-cent premium to Chicago, as it firms. The KC July chart has faded back through the 20-day moving average at $12.33 overnight with the fresh low at $11.73 as further support with the lower Bollinger band at $10.89 below that. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.