DTN Midday Grain Comments 05/31 10:53

DTN Midday Grain Comments 05/31 10:53 Corn, Soybean Futures Lower at Midday; Wheat Mixed Corn futures are 3 to 6 cents lower at midday Wednesday; soybean futures are 2 to 8 cents lower; wheat futures are 2 cents lower to 10 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 6 cents lower at midday Wednesday; soybean futures are 2 to 8 cents lower; wheat futures are 2 cents lower to 10 cents higher. The U.S. stock market is weaker with the S&P off 40 points. The U.S. Dollar Index is 40 points higher. Interest rate products are firmer. Energies are weaker with crude .90 lower and natural gas off .02. Livestock trade is higher. Precious metals are mixed with gold up 14.50. CORN: Corn futures are 3 to 6 cents lower at midday with firming back from the early lows. Spreads are gaining a little as we watch weather and outside market spillover going into midday. Ethanol margins will see pressure on the blender end, but the pullback in corn should remain supportive with the weekly report delayed until Thursday. The daily wire has been quiet recently with no sales or cancellations in recent days. Basis continues to hold a softer tone with better movement possibilities as fieldwork wraps up. The second crop in Brazil continues to head toward the home stretch with cheap enough offers to control export business. Weekly crop progress showed corn planting at 92% versus 84% on average; 72% emerged versus 63% on average; initial conditions at 69% good to excellent and 5% poor to very poor, just below the average guess. On the July chart we have support at the 20-day moving average at $5.83, which we bounced back from a test of this morning. SOYBEANS: Soybean futures are 2 to 8 cents lower with trade firming back from nearly 30 cent lower trade early. Product pressure continuing on negative energy spillover and demand concerns with disappointing economic numbers out of China. Meal is .50 to 1.50 lower and oil is 10 to 20 points lower. Basis will likely remain a little softer as fieldwork catches up more. Weekly crop progress showed planting at 83% versus 65% on average; 56% emerged versus 40% on average. July chart support is the lower Bollinger Band at $12.65 with the 20-day moving average still well above the market at $13.64. WHEAT: Wheat is 2 cents lower to 10 cents higher with KC action retaking the lead at midday. Spread action is turning back firmer after the recent correction with trade working to shake off the outside market spillover. Plains rains are expected to continue but abandoned acres and being late in the year keep yield ideas lower while Chicago wheat improves and spring wheat catches up. The dollar is at fresh highs again, with Matif wheat pressing into lows as well before firming again to limit upside. Weekly crop progress showing winter wheat slightly improved at 35% poor to very poor with 34% good to excellent; heading at 72% versus 73% on average; spring wheat is 85% planted versus 86% on average; 57% emerged versus 59% on average. On the KC July Chart, the lower Bollinger band at $7.62 is support with $8.00 becoming the first level of resistance. David Fiala can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.