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    DTN Grain Midday: Futures Prices Move Lower

    Highboy spraying seedling corn. ©Debra L Ferguson

    Corn futures are 3 to 6 cents lower at midday Wednesday; soybean futures are 10 to 12 cents lower; wheat futures are 3 to 6 cents lower.

    CORN:

    Corn futures are 3 to 6 cents lower at midday. The trading range has been just over a dime and we are near the lower end of the day session at midday. Outside markets are lending a weak tone at midday with crude and stocks lower. The outside markets are expected to continue to direct corn today and Thursday, then the focus will be on the Friday release of the USDA monthly WASDE.

    The demand adjustments along with the higher prices and supply adjustments will keep the market volatile and guessing the next USDA move. Corn planting should continue to move along at a normal pace. On the July contract chart, we have support at the 10-day moving average at $7.31, then the 20-day moving average at $7.26 with resistance at the new contract high of $7.55 1/2 printed Tuesday.

    SOYBEANS:

    Soybean futures are 10 to 12 cents lower at midday with some light, long profit-taking after the strength on Monday and Tuesday. Meal is $1.00 to $3.00 lower and oil is 30 to 70 points lower. Limited fresh export news did help the strength hold with fresh news needed to support trade when facing some light outside market pressure like we are at midday.

    South American harvest will continue to push forward with early planting still a bit off in the U.S. Crush margins will need one of the products to step forward and support margins with both well off the highs and energies limiting oil upside.

    On the July soybean chart we have resistance at the 10-day moving average of $16.25, which was our daily high so far Wednesday. Support is at the $16.05 50-day average, then the low printed Sunday night at $15.60.

    WHEAT:

    Wheat futures are 3 to 6 cents lower at midday with two-sided trade again as the market works to consolidate after the gains on Monday and Tuesday. The poor early winter wheat crop ratings should limit downside this week. The Plains look to be open this week with rains for the eastern growing areas possible with the second week potentially looking better for some western areas with excessive heat looking limited.

    On the KC May chart, the 20-day moving average at $10.78, which we are just above at midday, is support, then the lower Bollinger Band at $10.08. Resistance is at the $10.99 1/4 high printed Tuesday, then the $11.49 1/4 upper Bollinger Band.

    MARKET SUMMARY:

    The U.S. stock market is weaker with the Dow 333 points lower. The U.S. Dollar Index is 2 points higher. Interest rate products are weaker. Energies are mixed with crude down 240 and natural gas higher. Livestock trade is bouncing back with cattle and hogs higher. Precious metals are higher with gold up 3.00.

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