DTN Midday Grain Comments 06/01 10:53

DTN Midday Grain Comments 06/01 10:53 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 24 to 29 cents lower at midday Wednesday; soybean futures are 2 to 7 cents lower; wheat futures are 40 to 52 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 24 to 29 cents lower at midday Wednesday; soybean futures are 2 to 7 cents lower; wheat futures are 40 to 52 cents lower. The U.S. stock market is weaker with the S&P down 45 points. The U.S. Dollar Index is 75 points firmer. Interest rate products are weaker. Energies are firmer with crude up 1.45 and natural gas up .40. Livestock trade is sharply higher. Precious metals are mixed with gold down 2.50. CORN: Corn futures are 24 to 29 cents lower at midday with early mixed action giving way to broad selling again with optimism about short-term crop progress and demand worries helping to push long liquidation. The daily export wire has been quiet while basis has shown some short-term strength. 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 weekly ethanol report is delayed until Thursday. 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 cooler than normal temperatures to linger in the north, although drier in the short term. The weekly crop progress report showed planting at 86% versus 87% on average, emergence at 61% versus 68% on average. Crop conditions are waiting one more week to be assessed. On the July contract chart, we have resistance at the lower Bollinger Band at $7.43, which we have plunged below with the $7.00 area as longer-term support. SOYBEANS: Soybean futures are 2 to 7 cents lower at midday with early gains fading as spillover pressure from corn and wheat drags action down. Meal is $3.00 to $4.00 lower, and oil is flat to 10 points higher. South America is moving toward post-harvest footing at this point. On the weekly crop progress report, we were 66% planted versus 67% on average, with emerged at 39% versus 43% on average. Basis has held strength well at processors and exporters with signs of better movement. The daily export wire showed 132,000 metric tons (mt) sold to China. 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 $17.44 and 17.49 3/4. WHEAT: Wheat futures are 40 to 52 cents lower on better Continental Europe weather and hopes of Black Sea exports, along with the start of U.S. harvest spurring long liquidation again after overnight strength. Early harvest in the U.S. will spread with weak yields expected at the start. The weekly Crop Progress report showed slight improvement at 29% good to excellent and 40% poor to very poor; 72% headed versus 76% on average with spring wheat 73% planted versus 92% on average and 42% emerged versus 69% on average. The dollar is bouncing back from the recent lows but remains solidly off recent highs. Warmer weather on the Plains should help maturity, while the north will remain cool with less rain in the short term. KC wheat is back to an 87-cent discount to Minneapolis in weaker action and at an 84-cent premium to Chicago, as it firms slightly. The KC July chart has support at the lower Bollinger band at $10.94 after sliding to a multi-week low at $11.12 1/2. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.