DTN Midday Grain Comments     05/13 10:55

   Corns, Bean, Wheat Higher at Midday Monday

   Corn trade is 3 to 4 cents higher; beans are 7 to 9 cents higher and wheat 
trade is 15 to 21 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 lower. The 
dollar index is 10 points lower. The interest rate products are firmer. 
Energies have crude .70 cent higher and natural gas up .07 cent. Livestock 
trade is mostly higher. Precious metals are off with gold off $32.50.

CORN:

   Corn is 3 to 4 cents higher at midday with trade pressing into fresh highs 
as we extend Friday's gains with positive spillover support from wheat along 
with short-term weather concerns. On the report, trade saw old-crop carryout at 
2.022 billion bushels versus 2.090 expected, and new crop at 2.102 billion 
versus 2.287 expected on yield at 181.0 BPA. Brazil and Argentina production 
edged lower, with world stocks at 313.1 million metric tons versus 314.7 
expected.

   Ethanol margins will see further pressure if corn holds the upper end of the 
range with the uptick in demand needed to support blender margins. Near-term 
weather will likely slow planting short term with the weekly report likely to 
show progress a bit behind the five-year average with emergence in line with 
the average.

   The daily wire was quiet to start the week with weekly inspections a bit 
softer at 937,239 metric tons. South America has little fresh news after the 
recent fall in production expectations. On the July chart, the 20-day at $4.53 
is nearby support with the fresh high at 4.74 3/4 the next level of resistance 
which we are just below at midday.

SOYBEANS:

   Soybeans are 7 to 9 cents higher at midday with better action during the day 
session as trade follows the lead of corn and wheat to press back toward the 
upper end of the range. Meal is .50 cent to 1.50 cents lower and oil is 70 to 
80 points higher. On the report, old crop carryout was 340 million bushels 
versus 339 expected, and new crop at 445 million versus 435 expected, and world 
stocks were 111.8 million metric tons versus 112.0 expected with Argentina and 
Brazil production slightly lower. South America should continue to expand 
exports once Brazil's flooding eases and Argentina's harvest hits full stride.

   The daily wire was quiet today with weekly export inspections rangebound at 
406,052 metric tons. Planting will be slowed by early-week systems again with 
the weekly report likely to show planting near the five-year average with 
emergence just above the average. July soybean futures have resistance at the 
$12.56 fresh high. Chart support is at the 20-day moving average at $11.91.  

WHEAT:

   Wheat trade is 15 to 21 cents higher at midday with early two-sided action 
giving way to fresh highs as the day session got rolling with U.S. action 
following the lead of Euro prices. On the report, old-crop carryout was 688 
million bushels versus 695 million expected, and new crop at 766 million versus 
777 expected, while world stocks were 257.8 million versus 257.1 expected. The 
Plains should mostly have OK near-term moisture with temperatures around 
average, while the Black Sea area continues to struggle with cold in some areas 
and dryness in others.

   The weekly export inspections were range-bound at 366,339 metric tons with 
steady conditions on weekly crop progress with heading expected to be still 
solidly ahead of average, while spring wheat planting and emergence should 
remain ahead of average. The dollar is holding the recent range with MATIF 
wheat scoring fresh highs as well. On the KC July chart, support is the 20-day 
at $6.22, with the fresh high at 6.96 1/2 then the Upper Bollinger Band at 7.02 
as resistance.

   David Fiala can be reached at dfiala@futuresone.com

   Follow him on social platform X @davidfiala




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