DTN Midday Grain Comments     05/10 10:44

   Corn, Beans Lower, Wheat Higher at Midday Friday

   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 mixed at midday with the S&P 2 points higher. The 
dollar index is 15 points higher. The interest rate products are weaker. 
Energies have crude .10 cent lower and natural gas off a penny. Livestock trade 
is mixed. Precious metals are firmer with gold up $29.50.

CORN:

   Corn is 5 to 6 cents higher at midday with light buying with spillover 
support from wheat and position squaring ahead of the WASDE report release at 
10 a.m. CDT. Ethanol margins should remain range-bound with unleaded holding at 
the lower end of the recent range to limit blender margins. Near-term weather 
should allow planting to pick back up into mid-month and boost emergence ahead 
of the next systems coming through into midmonth. 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 was quiet to close the week. 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 3 to 4 cents higher at midday with trade working to find 
pre-report footing after the pullback of the last couple of sessions with 
overbought conditions easing ahead of the report. Meal is $1 to $2 lower and 
oil is 135 to 145 points higher. South America should continue to expand 
exports as they battle through short-term flooding and labor unrest issues. On 
the report, trade is looking for old crop carryout at 339 million metric tons 
of old crop, and 431 million of new.

   The daily wire was quiet today. The more open weather short term should 
boost planting with the east likely to remain slower. 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 9 to 13 cents higher at midday with Chicago action leading 
with strong spillover support from Euro values as Black Sea weather concerns 
reamins the headline. The Plains should warm up a bit and dry after the recent 
storms with further moisture needed to finish with the eastern plains looking 
better, while Black Sea frost and dryness are the headlines for the moment with 
a lot of growing season to go. On the report, trade is looking for old crop 
carryout at 696 million bushels and 786 million of new crop. The dollar is 
holding the recent range with MATIF wheat scoring fresh highs before fading 
slightly. On the KC July chart, support is the 20-day at $6.27, 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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