DTN Midday Grain Comments 05/03 10:46
05/03/2024
DTN Midday Grain Comments 05/03 10:46
Corn, Soybeans, Wheat Higher by Midday Friday
Corn trade is 2 to 3 cents higher. Beans are 5 to 7 cents higher and wheat
trade is 11 to 25 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is firmer at midday with the S&P 50 points higher. The
dollar index is 30 points lower. The interest rate products are firmer.
Energies have crude .40 cent lower and natural gas .07 cent higher. Livestock
trade is mostly higher with cattle leading. Precious metals are mixed with gold
down $6.40.
CORN:
Corn is 2 to 3 cents higher at midday with trade pressing through nearby
resistance levels with broad strength in ags to start Friday, but we have
started to see spreads and momentum soften. Ethanol margins have narrowed with
corn rebounding and unleaded struggling with better spring demand needed to
boost production ideas. Near-term weather looks to keep rain chances in play
for much of the belt into next week with planting progress likely slower in
many areas with cooler temps for many as well.
The daily wire was quiet again today. The recent patterns in South America
continue with some short-term dryness for double-crop corn areas along with
excess rain causing disease issues in other first-crop areas. On the July
chart, the 20-day at $4.48 is nearby support with the fresh higher at 4.68 the
next level of resistance.
SOYBEANS:
Soybeans are 5 to 7 cents higher at midday with trade pushing past $12
upfront again with meals leading to the product complex starting to ease at
midday again after the big early strength. Meal is $3 to $4 higher and oil is 5
to 15 points higher. South American bushels should continue to attract the most
export attention as harvest rolls on in South America with excess rains
hindering some areas.
The daily wire saw 122,000 metric tons of soybeans sold to unknown. Planting
progress is likely slow due to rains but there is plenty of window at this
point before major concerns would show up. July soybean futures have resistance
at the $12.40 recent high. Chart support is at the 20-day moving average at
$11.77 which we moved back above at midweek.
WHEAT:
Wheat trade is 11 to 25 cents higher with winter wheat action leading as we
move back to the upper end of the range after the midweek struggles with broad
ags buying this morning and spillover support from European prices surging
again. The Plains will see seasonal to above-normal temps to push the crop
along with better overall rain chances into the next week with the west the
least favored, while Black Sea forecasts have dried a bit again short term.
The dollar continues to drift lower with MATIF wheat sharply higher to close
the week. On the KC July Chart support is the 20-day at $6.07, with the fresh
high at 6.64 as further resistance.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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