DTN Midday Grain Comments     05/09 10:58

   Corn, Beans Lower, Wheat Higher at Midday Thursday

   Corn trade is 2 to 3 cents lower; beans are 15 to 16 cents lower and wheat 
trade is 7 to 10 cents higher.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   The U.S. stock market is firmer at midday with the S&P 20 points higher. The 
dollar index is 25 points lower. The interest rate products are mixed. Energies 
have crude .25 cent higher and natural gas .10 cent higher. Livestock trade is 
mixed. Precious metals are firmer with gold up $20.

CORN:

   Corn is 2 to 3 cents lower in quiet midday trade as we drift lower towards 
the WASDE report coming Friday along with spillover pressure from soybeans. 
Ethanol margins should get a boost from corn fading and unleaded finding 
footing but will need sustained better demand to drive greater production. 
Near-term weather should allow planting to pick back up into mid-month and 
boost emergence with all eyes on the mid-month forecast for the end of 
planting. On the report, trade is looking for old-crop carryout at 2.10 billion 
bushels and new crop at 2.284 billion bushels.

   The daily wire had 132,400 metric tons (mt) sold to Mexico with weekly sales 
solid at 889,200 mt of old crop, 49,100 of new. South America has seen little 
change in pattern short term with production estimates still easing for 
Argentina. On the July chart, the 20-day at $4.51 is nearby support with the 
fresh high at $4.72 the next level of resistance.

SOYBEANS:

   Soybeans are 15 to 16 cents lower at midday with trade continuing to fade 
from the fresh highs as product momentum turns negative and we start to see 
pre-report long profit taking. Meal is $4.50 to $5.50 lower and oil is 95 to 
105 points lower. South America should continue to expand exports as they 
battle through short flooding and labor unrest issues. On the report, trade is 
looking for old-crop carryout at 339 million metric tons (mmt) of old crop and 
431 million of new.

   The daily wire was quiet again with weekly sales ok seasonally at 428,900 mt 
old, and 4,600 new with meal at 209,300 old, 19,200 new with oil strong at 
11,600 old and 4,600 of new. The more open weather after the current system 
should help planting into mid-month. July soybean futures have resistance at 
the $12.56 fresh high. Chart support is at the 20-day moving average at $11.88. 
 

WHEAT:

   Wheat trade is 7 to 10 cents higher at midday with KC trade leading as we 
recoup Wednesday losses to stay in the middle of the recent range as we follow 
Euro values higher ahead of the report. The Plains should warm up a bit and dry 
after the recent storms with further moisture needed to finish, while Black Sea 
forecasts continue to be concerning as we move forward in the growing season. 
On the report, trade is looking for old crop carryout at 696 million bushels 
and 786 million of new crop. The dollar is fading again with MATIF wheat 
holding the upper end of the range. Weekly export sales improved at 41,100 mt 
old, and 406,000 of new crop. On the KC July chart, support is the 20-day at 
$6.23, 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




(c) Copyright 2024 DTN, LLC. All rights reserved.