DTN Midday Grain Comments 05/02 10:48

DTN Midday Grain Comments 05/02 10:48 Soybean, Wheat Futures Lower at Midday; Corn Mixed Corn futures are narrowly mixed at midday Tuesday; soybean futures are 2 to 3 cents lower; wheat futures are 4 to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are narrowly mixed at midday Tuesday; soybean futures are 2 to 3 cents lower; wheat futures are 4 to 9 cents lower. The U.S. stock market is weaker with the S&P off 75 points. The U.S. Dollar Index is 10 points lower. Interest rate products are firmer. Energies are weaker with crude down 3.15 and natural gas off .09. Livestock trade is weaker. Precious metals are mixed with gold up $30.50. CORN: Corn futures are narrowly mixed at midday with spread action continuing to firm as we try to find footing at the lower end of the range with risk-off outside markets limiting the early attempt to move higher. Ethanol margins will likely remain rangebound in the short term with unleaded weakness limiting blender margins. Basis will likely remain mixed in the short term. The second crop in Brazil will continue to be watched into the next part of the growing season with issues remaining limited and cheaper summer offers becoming more plentiful. Planting should start to pick up more in some areas again with warmer and drier weather for the middle of the belt into the second week with weekly progress at 26% complete, same as average, with 6% emerged versus 5% on average. On the July chart we are just above the lower Bollinger band at $5.77, with further support the fresh low at $5.72. SOYBEANS: Soybean futures are 2 to 3 cents lower with trade struggling to extend early gains as spreads and product action turn mixed after early strength. Meal is $3.00 to $4.00 lower and oil is 40 to 50 points higher. The daily wire has remained quiet in recent days as Brazil remains much cheaper as harvest winds down and shipping picks up along with exports to Argentine crushers to fill gaps left by drought there. Basis has generally remained solid in the short term with farmer movement likely to slow. New-crop soybeans have gained versus corn the last couple of sessions with weekly crop progress showing 19% planted versus 11% on average. July chart support is the $13.80 year low with the lower Bollinger Band as support at $14.02, which we were able to bounce from last week with the 20-day moving average well above the market at $14.54. WHEAT: Wheat futures are 4 to 9 cents lower after early strength evaporated again with trade scoring fresh lows with anticipated forecast improvement and limited short-term world issues keeping action oversold. Further rains will be needed to stabilize the crop with some dryland areas likely already done for the year. Spring wheat progress should start to catch up a little with crop conditions showing poor to very poor up 1% to 43% and up 2% for good to excellent at 28%; Kansas is at 64% poor to very poor with 25% headed versus 23% on average. Spring wheat is 12% planted versus 22% on average and 2% emerged versus 6% on average. The dollar is firming off the lower end of the range and Matif wheat is seeing broad selling Tuesday. On the world front, little has changed with early Northern Hemisphere weather underway and stable weather for continental Europe. On the KC July chart, the lower Bollinger Band at $7.49 is resistance with $7.40 as support below that. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.