DTN Midday Grain Comments 05/03 10:52

DTN Midday Grain Comments 05/03 10:52 Corn, Wheat Futures Higher at Midday; Soybeans Mixed Corn futures are 4 to 6 cents higher at midday Wednesday; soybean futures are narrowly mixed; wheat futures are 24 to 40 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 4 to 6 cents higher at midday Wednesday; soybean futures are narrowly mixed; wheat futures are 24 to 40 cents higher. The U.S. stock market is mixed with the S&P off 2 points. The U.S. Dollar Index is 50 points lower. Interest rate products are firmer. Energies are weaker with crude down 3.35 and natural gas off .09. Livestock trade is weaker. Precious metals are mixed with gold up $11.50. CORN: Corn futures are 4 to 6 cents higher with action reversing off fresh lows scored Wednesday morning with spillover support from wheat and short-covering amid oversold conditions ahead of the Fed Statement this afternoon. Ethanol margins will likely remain rangebound in the short term with unleaded weakness limiting blender margins. The weekly report showed ethanol production up 9,000 barrels per day (bpd) with stocks 943,000 barrels lower. 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 abounding. Planting should start to pick up more in some areas again with warmer and wetter weather out into the second week. On the July chart we are solidly above the lower Bollinger band at $5.71, with further support the fresh low at $5.69, while $6.00 will be the first resistance area. SOYBEANS: Soybean futures are narrowly mixed at midday following grains back from the lows with soyoil trying to lead on the product side. Meal is $2.50 to $3.50 lower and oil is 40 to 50 points higher. Brazil soybeans remain 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 for fieldwork. New-crop soybeans have given back the early week gains. July chart support is the $13.80 year low with the lower Bollinger Band as support at $13.91, which is well above with the 20-day moving average and well above the market at $14.50. WHEAT: Wheat futures are 25 to 40 cents higher at midday with broad buying on the incident at the Kremlin and condition concerns on the Plains as KC trade leads at midday. Further rains will be needed on the Plains to stabilize the winter wheat with some spring wheat planting progress likely to continue in the short term. The dollar is back to the lower end of the range ahead of the Fed statement and Matif wheat gains are more limited than U.S. action. 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 $7.35 is support with the $7.34 fresh low below that with $8.00 the next level higher. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.