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DTN Midday Grain Comments 05/06 10:51
Corn, Soybeans Scoring New Contract Highs
Corn is 6 to 8 cents higher with new crop 14 to 16 cents higher, soybeans
are 24 to 26 cents higher with new crop 21 to 23 cents higher and wheat 1 to 3
cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is firmer with the Dow up 150 points. The U.S. Dollar
Index is 0.38 lower. Interest rate products are higher. Energies are weaker
with crude down $0.60. Livestock trade is weaker. Precious metals are stronger
with gold up $32.20.
CORN:
Corn trade is 6 to 8 cents higher on July and 14 to 16 cents higher on
December at midday with weaker spread action ongoing as new contract highs are
scored again due to spillover from soybeans and weather concerns. Ethanol
margins will see pressure from corn values, but good driving demand and tight
stocks will mostly offset short term. 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. Weekly export sales were soft at
137,400 metric tons old crop and 106,200 metric tons of new. On the July
contract, chart resistance is the fresh contact high at $7.22 1/2 with support
the recent low at $6.29 1/2.
SOYBEANS:
Soybeans is 24 to 26 cents higher at midday on the front months, and 9 to 11
higher on new crop with fresh highs scored on new crop. Meal is $1.00 to $2.00
higher and oil is 0.70 cent to 0.80 cent higher. Planters will continue to roll
short term with some areas of rain slowing action, but we will remain well
ahead of normal with northern areas still dry. South America should continue to
see shipping progress with some Argentina soybeans starting to move. Weekly
export sales were mixed at 165,300 metric tons of old crop and 192,200 metric
tons of new crop; meal was 202,000 of old and 64,700 of new, and oil at 6,100.
On the July soybean chart, support is the recent low at $14.90, with resistance
the upper Bollinger Band at $15.97.
WHEAT:
Wheat trade is 1 to 3 cents higher at midday with the higher protein wheats
leading as trade works to follow the row crops further. KC is at 25-cent
discount to Chicago with Minneapolis now 40 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. Weekly export sales were disappointing at -95,600 metric tons and new
crop at 399,620 metric tons. KC July on the chart has support at the recent low
of $6.86 3/4 and resistance the upper Bollinger Band at $7.52.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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