DTN Midday Grain Comments 05/22 10:57

DTN Midday Grain Comments 05/22 10:57 Corn, Soybean Futures Higher at Midday; Wheat Flat-Higher Corn futures are 2 to 3 cents higher at midday Wednesday; soybean futures are 5 to 6 cents higher; wheat futures are flat to 3 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents higher at midday Wednesday; soybean futures are 5 to 6 cents higher; wheat futures are flat to 3 cents higher. The U.S. stock market is mixed at midday with the S&P 3 points lower. The U.S. Dollar Index is 15 higher. The interest rate products are mixed. Energies have crude .40 lower and natural gas .05 higher. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold off 32.50. CORN: Corn futures are 2 to 3 cents higher at midday, holding just above nearby support with flat to firmer spread action in quiet trade. The weekly ethanol report showed production up by 19,000 barrels per day (bpd) with stocks down 277,000 barrels ahead of Memorial Day. Planting will be slowed by the weather systems that moved through Tuesday with the second week of the forecast looking better for wrapping things up. Weekly export sales are expected to be in the 600,000 metric tons (mt) to 800,000 mt range Thursday. South America has little fresh news with little change to the weather patterns for the second crop in Brazil in the short term with disease issues still lingering in Argentina. Basis action should continue to remain mostly sideways. On the July chart, the 20-day moving average at $4.59 is now nearby support after we closed back above it Monday, with trade just above it at midday with the Upper Bollinger Band as resistance at $4.73. SOYBEANS: Soybean futures are 5 to 6 cents higher at midday with trade working sideways in the upper end of the range with product action more rangebound Wednesday. Meal is 1.00 to 2.00 lower and oil is 50 to 60 points higher. South America will continue to battle short-term export impediments with flooding and labor with talk of increased U.S. bookings off the West Coast, but nothing confirmed on the daily export wire. Weekly export sales are expected to be in the 250,000 to 450,000 mt range Thursday. Planting will need a bit of drying after the weather systems Tuesday with the second week more open. Basis should remain steady to softer until processers have better margins to encourage them. The July soybean futures have resistance at the $12.56 fresh high. Chart support is at the 20-day moving average at $12.12. WHEAT: Wheat futures are flat to 3 cents higher with fresh highs for the move scored before fading a little toward the day session with trade getting overbought again and seeing some long liquidation into midday. Weather should drift back drier for the Plains into the end of the month with temps near average. The dollar is a touch firmer with MATIF wheat just short of the fresh overnight highs as well. Weekly export sales are expected to be in the 200,000 to 350,000 mt range. The short-term forecast continues to look drier for the Black Sea areas as well. On the KC July chart support is the 20-day moving average at $6.65, with the fresh high as $7.19 as resistance with the upper Bollinger Band at $7.12, which we are just below. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.