DTN Midday Grain Comments

General Comments

The U.S. stock market indices are flat to lower with the Dow down 45 at midday. The interest rate products are lower. The dollar index is 7 lower. Energies are mixed with crude down 0.08. Livestock trade is mostly lower. Precious metals are mixed with gold up $3.80.

CORN

Corn trade is flat to 2 cents higher at midday with trade find light buying with continued focus on weather coming forward and trade getting a bit oversold from the start to the week. The weekly ethanol production report showed production down 1.2%, stocks down 1.2% with gasoline demand rebounding from the lows seen last week. The weather forecast continues to evolve with the placement of the tropical system making landfall this week the biggest question for Corn Belt rain, with heat edging back in during the extended forecast for the Plains but mild elsewhere. On the July corn contract support is at the spring low at $3.60 1/2 with resistance the 200-day at $3.71.

SOYBEANS

Soybean trade is 2 to 6 cents lower at midday with initial overnight buying evaporating during the day session again. Meal is flat to $1 lower and oil is flat to 10 points lower. South America should continue to push bushels into the world export market at very competitive prices. The slide in soyoil hurt crush margins Tuesday with the biodiesel uncertainty still lingering with the EPA punting on rulings again. July beans have major support at the $9.09 1/2 14-month low, with the 20-day at $9.29 first resistance, and the 10-day at $9.34 above that.

WHEAT

Wheat trade is 2 to 5 cents lower at midday with harvest pressure and overbought conditions helping to trigger a pull back with continued volatile trade expected in the near term. Winter wheat harvest continues to expand in Kansas with mixed results continuing with good yields and poor protein in central Kansas and lighter yields and better protein west. Europe and the Black Sea area continues to see warm and dry temperatures for the immediate future. The dollar has firmed off the lows but the larger down trend still looks to be intact. On the July Kansas City contract support is the 10-day at $4.61 with resistance the recent high at $4.81.David

Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala

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