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DTN Midday Grain Comments 05/07 10:53

5/7/2024 - 11:25:00

DTN Midday Grain Comments     05/07 10:53

   Corn Higher, Beans and Wheat Mixed at Midday Tuesday

   Corn trade is 2 to 3 cents higher. Beans are narrowly mixed and wheat trade 
is 4 cents lower to 2 cents higher.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   The U.S. stock market is firmer at midday Tuesday with the S&P 12 points 
higher. The dollar index is 9 points higher. The interest rate products are 
firmer. Energies have crude .20 cent lower and natural gas .01 cent higher. 
Livestock trade is firmer. Precious metals are mixed with gold off $7.10.

CORN:

   Corn is 2 to 3 cents higher at midday with trade pressing to highs in quiet 
action after early weakness with little fresh news to drive trade as we get 
more overbought. Ethanol margins will see pressure from corn strength but we 
have seen some recent driving demand improvement to help set up a boost to 
blender margins later in the month. Near-term weather should open up a bit 
after today's system to allow the planting pace to pick back up into mid-month 
with progress slow for now.

   Weekly crop progress showed 36% planted vs. 39% on average and 12% emerged 
vs. 9% on average. 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 the first-crop areas to the south. On the July chart, the 
20-day at $4.50 is nearby support with the fresh high at 4.72 the next level of 
resistance.

SOYBEANS:

   Soybeans are narrowly mixed at midday with softer spread action as trade 
works to consolidate the recent gains while oil continues to lead the product 
complex. Meal is .50 cent to $1.50 lower and oil is 30 to 40 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 as 
production estimates fade for Argentina short term.

   The daily wire was quiet again today. The more open weather after the 
current system should help planting into mid-month with weekly crop progress 
showing 25% planted vs. 21% on average, and 9% emerged vs. 4% on average. July 
soybean futures have resistance at the $12.56 fresh high. Chart support is at 
the 20-day moving average at $11.83.  

WHEAT:

   Wheat trade is 4 cents lower to 2 cents higher with trade again rebounding 
from early profit-taking to stay near the recent highs with little change to 
U.S. conditions or world weather. The Plains should warm up a bit and dry after 
the storms moved across yesterday, likely causing some localized issues, while 
Black Sea forecasts continue to be concerning at an early stage in the growing 
season.

   Weekly crop progress showed conditions 1% better to 50% good to excellent, 
and 16% poor to very poor, with 43% headed vs. 32% on average. Spring wheat was 
47% planted vs. 31% on average and 12% emerged vs. 9% on average. The dollar 
continues to hold the lower end of the recent range with MATIF wheat pulling 
back from the fresh highs but rebounding from the early selling. On the KC July 
chart, support is the 20-day at $6.15, with the fresh high at 6.79 as further 
resistance.

   David Fiala can be reached at dfiala@futuresone.com

   Follow him on social platform X @davidfiala




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