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DTN Midday Grain Comments 05/08 10:51
Corn, Beans and Wheat Lowe4r at Midday Wednesday
Corn trade is 7 to 8 cents lower; beans are 5 to 6 cents lower and wheat
trade is 12 to 18 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is mixed at midday with the S&P 3 points lower. The
dollar index is 15 points higher. The interest rate products are weaker.
Energies have crude .25 cent higher and natural gas .02 cent higher. Livestock
trade is weaker. Precious metals are mixed with gold off $1.30.
CORN:
Corn is 7 to 8 cents lower at midday with trade fading back from the top of
the recent range with profit taking vs. recent longs and a more open short-term
forecast to push planting along. The weekly ethanol report showed production
down 22,000 barrels per day, and stocks were off by 1.29 million barrels with
some exports. Near-term weather should allow planting to pick back up into
mid-month and boost emergence.
The daily wire was quiet again with weekly sales expected to be in the
400,000 to 600,000 metric ton range tomorrow. The recent patterns in South
America continue with some short-term dryness for double-crop corn areas along
with excess rain causing disease issues in the first crop areas to the south.
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 5 to 6 cents lower at midday with trade seeing light profit
taking from the highs as trade is a bit overbought with mixed product action
after the recent rally. Meal is .50 cent to $2.50 lower and oil is flat to 10
points higher. South America will continue to push to the end of harvest with
flooding still hindering some as they will remain in the fat part of their
export season.
The daily wire was quiet again today with weekly sales expected to be in the
200,000 to 400,000 metric ton range tomorrow with oil expected to be favored on
the product side. The more open weather after the current system should help
planting into mid-month. The July soybean futures have resistance at the $12.56
fresh high. Chart support is at the 20-day moving average at $11.87.
WHEAT:
Wheat trade is 12 to 18 cents lower at midday with trade fading back from
the top of the range as we consolidate recent gains amid overbought conditions
and look for further growing season developments across the northern
hemisphere. The Plains should warm up a bit and dry after the recent storms,
while Black Sea forecasts continue to be concerning at an early stage in the
growing season. The dollar continues to hold the lower end of the recent range
with MATIF wheat pulling back from the fresh highs again. Weekly export sales
are expected to be in the 300,000 to 450,000 metric ton range. On the KC July
Chart support is the 20-day at $6.19, with a 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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