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DTN Midday Grain Comments 05/15 10:48
Corn Lower, Beans Higher, Wheat Mixed at Midday Wednesday
Corn trade is 2 to 3 cents lower; beans are 6 to 8 cents higher and wheat
trade is narrowly mixed.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is firmer at midday Wednesday with the S&P 45 points
higher. The dollar index is 55 points lower. The interest rate products are
firmer. Energies have crude and natural gas narrowly mixed. Livestock trade is
mixed. Precious metals are firmer with gold up $30.50.
CORN:
Corn is 2 to 3 cents lower with trade giving up early gains as the day
session wears on with choppy action and soft spreads as we balance planting
pace and a lack of fresh world news to drive action. The weekly ethanol report
showed production up 35,000 barrels per day to get back to 1 million on daily
runs with stocks up by 289,000 barrels. Near-term weather will likely slow
planting short term with active systems moving through with some windows for
progress.
The daily wire was quiet today with sales expected to be in the 600,000 to
800,000 metric ton range tomorrow. South America has little fresh news after
the recent fall in production expectations with fresh Brazilian estimates
edging lower. On the July chart, the 20-day at $4.56 is nearby support with the
fresh high at 4.75 1/2 the next level of resistance which we are just below.
SOYBEANS:
Soybeans are 6 to 8 cents higher with choppy range-bound action continuing
with meal leading the product complex again after the oil reversal yesterday
with fresh news limited overall. Meal is $2 to $3 higher and oil is flat to 10
points higher. South America had Brazil's estimates edge lower with the
flooding while Argentina shows little change ahead of widespread harvest with
exports likely to pick up more steam into the end of the month.
The daily wire showed 180,000 metric tons of soybeans sold to unknown split
2/3 to old crop and 1/3 to new with weekly sales expected to be in the 200,000
to 400,000 metric ton range. 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. July soybean futures have resistance at the $12.56 fresh high. Chart
support is at the 20-day moving average of $11.97.
WHEAT:
Wheat trade is narrowly mixed with trade pulling back sharply from 20 cents
higher action at the start of the day session with few surprises on the wheat
tour so far, and little fresh news to push world values after the highs scored
on Monday, along with overbought conditions easing. The Plains should see some
continued showers but nothing heavy short term, while the Black Sea area will
continue to see short-term dryness.
The dollar is back to the lower end of the recent range with MATIF wheat
just short of the fresh highs. On the KC July chart, support is the 20-day at
$6.44, with the fresh high as $7.10 as resistance with the upper Bollinger Band
at $7.08 just below that.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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