DTN Midday Grain Comments 05/27 10:53
Corn, Soybean, Wheat Futures Higher at Midday
Corn futures are 11 to 13 cents higher at midday Friday; soybean futures are
6 to 15 cents higher; wheat futures are 17 to 24 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the S&P up 65 points. The U.S. Dollar
Index is unchanged. Interest rate products are mostly firmer. Energies are
mixed with crude down .30 and natural gas down .25. Livestock trade is mixed.
Precious metals are firmer with gold up 3.50.
Corn futures are 11 to 13 cents higher at midday, firming into Memorial Day
weekend with little fresh news and flat spread trade which should leave us
close to flat on the week. The daily export wire has been quiet, and basis has
flattened out. Ethanol margins look to remain rangebound near term with the
bounce in unleaded to support blending along with holiday demand. The second
crop in Brazil will head for the homestretch while U.S. weather continues to
keep moisture in much of the Corn Belt with warmer weather into the weekend. On
the July contract chart, we have resistance at the 20-day moving average at
$7.85 with the lower Bollinger Band at $7.60 as support, which we tested again
overnight with the fresh low at $7.55 below that.
Soybean futures are 6 to 15 cents higher at midday with firmer spread trade
and consolidation expected around the fresh highs heading into the weekend.
Meal is $5.50 to $6.50 higher and oil is 55 to 65 points lower as we continue
to try to balance crush margins. South America is moving toward post-harvest
footing at this point. In the U.S. planting will remain sluggish with the
expected moisture this week, but warmer temps may help progress into the
weekend. Basis has held strength well at processors and exporters with signs of
better movement. On the July soybean chart, we are still solidly above the
20-day moving average at $16.57 with the fresh high and the Upper Bollinger
Band just above current action at $17.44.
Wheat futures are 17 to 24 cents higher at midday with spring wheat leading.
Choppy action continues with trade settling into range to close the week with
some profit-taking versus recent shorts. Russia has allowed limited transit out
of Mariupol, but we remain a ways off from serious progress in opening more
ports with weather stabilizing in Europe. The dollar has faded to the lower end
of the range. Warmer weather is expected to return soon to push maturity again
with spring wheat progress likely to continue to struggle in the north. KC
wheat is back to a 69-cent discount to Minneapolis in wider action, and at a
78-cent premium to Chicago, narrowing a bit. The KC July chart has resistance
at the Upper Bollinger Band at $13.83, with the 20-day moving average at
$12.25, which we tested again overnight, and the low at $11.92 becoming further
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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