DTN Closing Grain Comments

By Darin Newsom
DTN Senior Analyst

General Comments:

July corn was down 1 1/4 cents at $3.68 3/4 with new-crop December 1 1/4 cents lower at $3.86 3/4. July soybeans finished 9 cents lower at $9.18 3/4 with new-crop November off 11 cents at $9.27 3/4. July Chicago wheat closed 8 cents lower at $4.64 1/2, July Kansas City fell 6 1/2 cents to $4.67 3/4, and September Minneapolis dipped 8 cents to close at $6.51 1/4. The U.S. dollar index was 0.10 lower at 97.65. August gold was $3.30 higher at $1,246.80 while July silver was $0.037 lower and July copper gained $0.0380. The Dow Jones Industrial Average fell 63 points to 21,403. August crude oil lost $1.34 to $42.17. The July distillates (heating oil) contract was $0.0397 lower, July RBOB gasoline fell $0.0258, and July natural gas dropped $0.017.

Corn:

Corn spent much of the day bouncing back and forth across unchanged before finally closing lower on spillover selling from soybeans. With little fresh news to provide direction, traders focused on weather forecasts that continue to call for chances of rains across the U.S. Midwest and cooler temperatures this coming weekend. Nothing significant has happened to charts this week with futures (both old-crop and new-crop) and futures spreads sitting in sideways trends. The overnight session should see ongoing influence of late-day weather maps.

Soybeans:

Soybeans were hit hard late in the day, falling to fresh session lows of double-digit losses over the last half-hour or so. Futures spreads were generally flat indicating the bulk of the selling came from noncommercial traders. The threat to the market is its recently established uptrend on weekly charts could quickly be washed away if this activity continues through Friday's close. Overnight trade could see continued pressure ahead of what is expected to be a neutral-to-bullish round of weekly export sales and shipment numbers (for the week ending Thursday, June 15) set for release Thursday morning.

Wheat:

The wheat complex as a whole was lower Wednesday, with Minneapolis spring wheat showing the effects of a fain system that moved across parts of South Dakota overnight. Winter wheat saw renewed harvest selling, though interestingly enough Kansas City futures spreads actually closed with a slightly weaker carry. Traders will likely continue to focus on harvest, and weather overnight into Thursday morning. As for the next round of weekly export sales and shipment numbers (for the week ending Thursday, June 15) it is still early in the new marketing year should they should have little influence on market direction.

Darin Newsom can be reached at darin.newsom@dtn.com

FollowDarin on Twitter @DarinNewsom

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