DTN Midday Grain Comments 05/17 10:53
05/17/2024
DTN Midday Grain Comments 05/17 10:53
Corn, Wheat Futures Lower at Midday; Soybeans Higher
Corn futures are 2 to 3 cents lower at midday Friday; soybean futures are 6
to 7 cents higher; wheat futures are 6 to 8 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 2 to 3 cents lower at midday Friday; soybean futures are 6
to 7 cents higher; wheat futures are 6 to 8 cents lower. The U.S. stock market
is mixed at midday with the S&P 2 points lower. The U.S. Dollar Index is
narrowly mixed. The interest rate products are weaker. Energies have crude .30
higher and natural gas .10 higher. Livestock trade is mixed with cattle
leading. Precious metals are firmer with gold up 24.50.
CORN:
Corn futures are 2 to 3 cents lower at midday with trade fading through
nearby support with little fresh news to entice bulls. Ethanol margins should
get a boost from the corn pullback with unleaded holding the lower end of the
range, but improved driving demand will need to continue. Planting should
continue to progress ahead of the next system working through later in the
weekend. South America has little fresh news with little change to the weather
patterns for the second crop in Brazil in the short term. Basis action has been
mostly sideways as fieldwork rolls on. On the July chart, the 20-day moving
average at $4.57 is nearby support, which we are just below at midday with the
fresh high at 4.75 1/2 the next level of resistance.
SOYBEANS:
Soybean futures are 6 to 7 cents higher at midday with broad product
strength as trade continues to chop along above nearby support levels but
giving back a little bit of the overnight strength. Meal is .50 to 1.50 higher
and oil was 50 to 60 points higher with oil carving out a better level of
support this week. South America will continue to battle short-term export
impediments but overall the pace should continue to expand. Planting should run
better ahead of the weekend systems. 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 $12.03.
WHEAT:
Wheat futures are 6 to 8 cents lower at midday with trade fading yet again
from overnight strength with immediate weather and political concerns easing
again as longs take profit after the recent move. The Kansas wheat tour
finished with the best estimates in three years, but still well below the
recent high of 2021 at 46.6 bushels per acre (bpa). The Plains should see some
continued showers especially to the east into the end of the month, while the
Black Sea area will continue to see short-term dryness with some forecast
improvement. The dollar is firming back off the lower end of the recent range
with MATIF wheat trading sideways after Black Sea port attacks. On the KC July
chart, support is the 20-day moving average at $6.53, with the fresh high $7.10
as resistance with the upper Bollinger Band at $7.06 just below that.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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