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DTN Midday Grain Comments     05/27 10:53

   Corn, Soybean, Wheat Futures Higher at Midday

   Corn futures are 11 to 13 cents higher at midday Friday; soybean futures are 
6 to 15 cents higher; wheat futures are 17 to 24 cents higher. 

David M. Fiala
DTN Contributing Analyst


   The U.S. stock market is firmer with the S&P up 65 points. The U.S. Dollar 
Index is unchanged. Interest rate products are mostly firmer. Energies are 
mixed with crude down .30 and natural gas down .25. Livestock trade is mixed. 
Precious metals are firmer with gold up 3.50.


   Corn futures are 11 to 13 cents higher at midday, firming into Memorial Day 
weekend with little fresh news and flat spread trade which should leave us 
close to flat on the week. The daily export wire has been quiet, and basis has 
flattened out. Ethanol margins look to remain rangebound near term with the 
bounce in unleaded to support blending along with holiday demand. The second 
crop in Brazil will head for the homestretch while U.S. weather continues to 
keep moisture in much of the Corn Belt with warmer weather into the weekend. On 
the July contract chart, we have resistance at the 20-day moving average at 
$7.85 with the lower Bollinger Band at $7.60 as support, which we tested again 
overnight with the fresh low at $7.55 below that.


   Soybean futures are 6 to 15 cents higher at midday with firmer spread trade 
and consolidation expected around the fresh highs heading into the weekend. 
Meal is $5.50 to $6.50 higher and oil is 55 to 65 points lower as we continue 
to try to balance crush margins. South America is moving toward post-harvest 
footing at this point. In the U.S. planting will remain sluggish with the 
expected moisture this week, but warmer temps may help progress into the 
weekend. Basis has held strength well at processors and exporters with signs of 
better movement. On the July soybean chart, we are still solidly above the 
20-day moving average at $16.57 with the fresh high and the Upper Bollinger 
Band just above current action at $17.44.


   Wheat futures are 17 to 24 cents higher at midday with spring wheat leading. 
Choppy action continues with trade settling into range to close the week with 
some profit-taking versus recent shorts. Russia has allowed limited transit out 
of Mariupol, but we remain a ways off from serious progress in opening more 
ports with weather stabilizing in Europe. The dollar has faded to the lower end 
of the range. Warmer weather is expected to return soon to push maturity again 
with spring wheat progress likely to continue to struggle in the north. KC 
wheat is back to a 69-cent discount to Minneapolis in wider action, and at a 
78-cent premium to Chicago, narrowing a bit. The KC July chart has resistance 
at the Upper Bollinger Band at $13.83, with the 20-day moving average at 
$12.25, which we tested again overnight, and the low at $11.92 becoming further 

   David Fiala can be reached at 

   Follow him on Twitter @davidfiala

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