DTN Midday Grain Comments 05/04 11:02

DTN Midday Grain Comments 05/04 11:02 Corn, Soybean Futures Lower at Midday; Wheat Higher Corn futures are 2 to 3 cents lower at midday Thursday; soybean futures are 7 to 9 cents lower; wheat futures are 4 to 9 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents lower at midday Thursday; soybean futures are 7 to 9 cents lower; wheat futures are 4 to 9 cents higher. The U.S. stock market is weaker with the S&P off 370 points. The U.S. Dollar Index is 15 points higher. Interest rate products are firmer. Energies are flat with crude up .15 and natural gas off .05. Livestock trade is mixed. Precious metals are firmer with gold up $18.50. CORN: Corn futures are 2 to 3 cents lower at midday with trade seeing two-sided action with early gains fading but we are seeing a little better action toward midday. Ethanol margins will likely remain rangebound in the short term with unleaded weakness limiting blender margins. Weekly export sales were negative at 315,600 metric tons (mt) in cancellations for old crop; 121,000 mt sold for new. Basis will likely remain mixed in the short term. The second crop in Brazil continues to make good progress and develop cheaper summer offers. Planting should continue to move forward at a good clip except for the north. 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 7 to 9 cents lower at midday with trade continuing to chop around rangebound with meal still limiting product upside while oil tries to consolidate recent gains. Meal is $5.50 to $6.50 lower and oil is 20 to 30 points higher. Weekly export sales were unexceptional at 289,700 mt of old crop; 67,000 mt of new; products were mixed at 179,600 of old meal, -17,000 of new; and 14,000 of new oil. 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 with late acre switching unlikely as planting will remain above average. July chart support is the $13.80-year low with the lower Bollinger Band as support at $13.91, which iswell above with the 20-day moving average and well above the market at $14.46. WHEAT: Wheat futures are 4 to 9 cents higher at midday with trade working to consolidate the Wednesday rebound with two-sided action so far with firmer action again into midday as we see KC lead again. 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 as trade works to play catch up. The dollar is back to the lower end of the range after the fed statement and Matif wheat continues to struggle, limiting Chicago wheat upside. On the world front, little has changed with Northern Hemisphere weather underway and stable weather for continental Europe. Weekly export sales were rangebound at 211,100 mt of old crop and 279,900 mt of new. 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.