DTN Midday Grain Comments 05/05 10:44

DTN Midday Grain Comments     05/05 10:44

   New Crop Corn and Soybeans Higher Midday

   Corn is 2 to 3 cents lower with new crop 8 to 9 cents higher, soybeans are 1 
to 2 cents higher with new crop 4 to 6 cents higher and wheat 4 to 8 cents 
higher.

David M. Fiala
DTN Contributing Analyst

   MARKET SUMMARY:

   The U.S. stock market is firmer with the Dow up 70 points. The U.S. Dollar 
Index is 0.03 lower. Interest rate products are mixed. Energies are higher with 
crude up $0.85. Livestock trade is mixed. Precious metals are mixed with gold 
up $7.20.

   CORN:

   Corn trade is 2 to 3 cents lower at midday with weaker spread action so far 
after late-day weakness on Tuesday, which is the first yellow flag we've seen 
on this move for a bit. New crop is 8 to 10 cents higher, just below contract 
highs. The weekly ethanol report showed production 7,000 barrels a day higher, 
while stocks were 704,000 barrels higher. Trade will continue to watch for 
rains to benefit the rapid early corn planting progress, with some key areas 
still short of moisture. Brazil continues to struggle with dryness during 
pollination. Corn basis is holding firm throughout the belt. USDA announced new 
crop sales to Mexico of 184,100 metric tons to Mexico, 147,320 to unknown split 
between old and new, while China cancelled 140,000 metric tons of old crop 
sales. On the July contract, chart resistance is the fresh contact high at 
$7.04 with support the recent low at $6.29 1/2.

   SOYBEANS:

   Soybeans are 1 to 2 cents higher with slightly weaker spread action after 
early strength, while meal takes the lead in the product complex. Meal is $3.00 
to $4.00 higher and oil is 0.40 cent to 0.50 cent lower. Planters will continue 
to roll short term with some areas of rain slowing action, but we will remain 
well ahead of normal. South America should continue to see shipping progress 
with some Argentina soybeans starting to move. On the July soybean chart, 
support is the recent low at $14.90, with resistance the upper Bollinger Band 
at $15.89.

   WHEAT:

   Wheat trade is 4 to 8 cents higher at midday with trade likely to keep 
chopping around the upper end of the range with spillover from the row crops 
and the dollar holding the bounce off the lows so far. KC is at 27-cent 
discount to Chicago with Minneapolis now 45 cents above Chicago. Seasonal 
weather on the Plains should boost growth with dry concerns for spring wheat 
staying in place. Other Northern Hemisphere weather will continue to be watched 
as well with little fresh news on the front. KC July on the chart has support 
at the recent low of $6.86 3/4 and resistance the upper Bollinger Band at $7.44.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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