DTN Midday Grain Comments     05/16 10:53

   Corn Lower, Beans Mixed, Wheat Higher at Midday Thursday

   Corn trade is 4 to 5 cents lower; beans are narrowly mixed and wheat trade 
is flat to 5 cents higher.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   The U.S. stock market is firmer at midday with the S&P 15 points higher. The 
dollar index is 15 points higher. The interest rate products are mixed. 
Energies have crude $0.40 higher and natural gas $0.10 higher. Livestock trade 
is firmer. Precious metals are weaker with gold off $10.50.

CORN:

   Corn is 4 to 5 cents lower at midday with trade back to nearby support 
levels with broad weakness during the day session and little other fresh news 
to move the market. Ethanol margins should get a boost from the corn pullback 
with unleaded holding the lower end of the range. Near-term weather will likely 
slow planting short term with active systems moving through with some windows 
for progress into the middle of next week.

   The daily wire was quiet with sales a touch softer than in recent weeks at 
742,200 metric tons of old crop, and 128,200 of new. South America has little 
fresh news with little change to the weather patterns for the second crop in 
Brazil short term. On the July chart, the 20-day at $4.57 is nearby support 
which we are testing at midday with the fresh high at 4.75 1/2 the next level 
of resistance which we are just below.

SOYBEANS:

   Soybeans are narrowly mixed in quiet trade as trade works to digest the NOPA 
report yesterday with little other fresh news to drive action. Meal is 2.50 to 
3.50 lower and oil is 60 to 70 points higher. NOPA crush was down 4.2% on the 
year, coming below expectations as crush margins deteriorated with oil stocks a 
bit tighter. South America will continue to battle short-term export 
impediments but overall, the pace should continue to expand.

   The daily wire was quiet with weekly sales showing improvement in products 
with 300,400 metric tons of old crop meal, 31,000 of new, and 9,100 of oil 
while full beans remained soft seasonally at 265,700 of old, and 25,200 of new. 
Planting will be slowed by showers working across the south and east of the 
belt this week but there will be other areas of progress. The July soybean 
futures have resistance at the $12.56 fresh high. Chart support is at the 
20-day moving average at $12.00.  

WHEAT:

   Wheat trade is flat to 5 cents higher with trade continuing the pattern of 
overnight strength before fading off the early highs yet again as overbought 
conditions ease after the early week highs. 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.

   The dollar is back to the lower end of the recent range in choppy trade with 
MATIF wheat just off the recent highs as well. Weekly export sales remained 
rangebound at 78,500 metric tons of old crop, and 304,300 of new. On the KC 
July Chart support is the 20-day at $6.49, with the fresh high as $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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