DTN Midday Grain Comments 05/15 11:05

DTN Midday Grain Comments 05/15 11:05 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 5 to 10 cents higher at midday Monday; soybean futures are 9 to 18 cents higher; wheat futures are 18 to 21 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 10 cents higher at midday Monday; soybean futures are 9 to 18 cents higher; wheat futures are 18 to 21 cents higher. The U.S. stock market is flat with the S&P up 5 points. The U.S. Dollar Index is 20 points lower. Interest rate products are weaker. Energies are firmer with crude 1.10 higher and natural gas up .10. Livestock trade is mostly higher. Precious metals are flat with gold unchanged. CORN: Corn futures are 5 to 10 cents higher at midday while spread action remains strong with December corn scoring a fresh low again before rebounding higher, while short-term weather threats remain limited. The WASDE report came in above expectations with old-crop corn stocks at 1.417 billion bushels (bb) versus 1.366 bb expected and new crop at 2.222 bb versus 2.044 bb expected with corn yield at 181.5 bushels per acre (bpa) versus 180.7 bpa expected, while new-crop world stocks were 312.9 million metric tons (mmt) versus 307.8 mmt expected, with old crop flat. Weekly export inspections improved at 1.174 mmt. Basis will likely see some mixed action in the short term with the west stronger. The second crop in Brazil continues to make good progress and develop cheaper summer offers with short-term weather threats limited. Planting progress should remain good in the short term with the weekly report expected to show planting and emergence solidly ahead of average. On the July chart we continue to have support at $5.69 as the recent low while the 20-day moving average looms just above the market at $5.98. SOYBEANS: Soybean futures are 9 to 18 cents higher at midday with short-covering to start the week. Oil is taking the lead on the product complex as meal relaxes as the July contract presses back past $14.00 up front and new-crop firms off the low. Meal is $1.00 to $2.00 higher and oil is 60 to 70 points higher. On the WASDE report, old-crop carryout at was 215 million bushels (mb) versus 212 mb expected, and new crop at 335 mb versus 293 mb expected with yield at 52.0 bpa versus 51.8 bpa expected with new-crop world stocks at 122.5 mmt versus 107.4 mmt expected, reflecting Brazil production. USDA reported a private export sale of soy meal to Poland for 2022/2023 delivery. Weekly inspections slipped at 147,987 metric tons (mt). Basis will likely turn a little softer as fieldwork catches up more. Weekly crop progress should show planting and emergence solidly ahead of average. July chart support is the $13.80 year low with the lower Bollinger Band as further support at $13.77, with the 20-day moving average above the market at $14.27. WHEAT: Wheat futures are 18 to 21 cents higher overnight with broad strength as KC holds the leading position but Chicago and Minneapolis are keeping pace while the intramonth spreads relax slightly with Plains supply concerns helping to hold strength. The WASDE report was supportive with old-crop carryout off slightly at 598 mb versus 602 mb expected, and new crop at 556 mb versus 604 mb expected with wheat production off 130 mb from expectations at 1.659 bb with the bulk from hard red winter wheat with the late rains likely encouraging acres to switch to a different crop. World stocks were 264.3 mmt versus 259.5 mmt expected. Spring wheat areas should see better progress into next week with good moisture to add emergence with cooler weather potentially keeping some rain in the picture. The dollar has eased from the recent highs overnight, while Matif wheat holds light gains to support Chicago action. Export inspections slipped a little at 242,269 mt. Weekly crop progress is expected to show steady to slightly better conditions for winter wheat with heading ahead of normal, with spring wheat still lagging the 5-year average. On the KC July Chart, the 20-day moving average is support at $8.18 with $9.12 3/4 the next level of resistance, which is the fresh high for the move from overnight with the Upper Bollinger Band at $9.04 as well. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.