DTN Midday Grain Comments

General Comments

The U.S. stock market indices are higher with the Dow up 10 points. The interest rate products are mixed. The dollar index is 40 points lower. Energies are firmer with crude up 0.40. Livestock trade is mixed. Precious metals are higher with gold up $8.10.

CORN

Corn trade is 1 to 2 cents lower at midday after some mixed overnight action. Trade is slow at midday with momentum flat to lower. Trade should turn more active this afternoon with a balance of long liquidation due to new lows for the move, but shorts may also want to take profits ahead of a summer weekend. Temperatures will be cooler over the weekend. The weather forecast continues to evolve with bigger rains expected for much of the belt in the extended forecast returning to normal temps next week. Ethanol margins are not benefiting from the lower corn trade with ethanol futures slipping around 10 cents a gallon on the week. Crude oil and unleaded are slightly higher at midday but they have had a negative month; crude fell around $10 a barrel from the late May high to the low printed on Wednesday. July corn futures have support at the new low at $3.60, put-in this morning, with resistance the 200-day at $3.71.

SOYBEANS

Soybean trade is fractionally to 4 cents lower at midday with selling returning during the day session after some overnight strength. Meal is flat to $1 lower and oil is 5 to 15 points higher. The possibility of added acres and demand concerns are weighing on the market. The USDA June Planting Intentions and June Quarterly Stocks reports will be out one week from now. South America should continue to push bushels into the world export market at very competitive prices. Spread trade has favored old crop today, showing some demand green shoots. July beans have major support at the $9.00 14-month low made this morning, with the 20-day at $9.25 first resistance, and the 10-day at $9.26 above that.

WHEAT

Wheat trade is 2 to 3 cents higher on winter wheat contracts and 15 cents higher on Minneapolis trade at midday. Minneapolis is leading the strength with weather remaining challenging for the northern plains and European weather concerns. Winter wheat harvest expansion is limiting upside for winter wheat. Protein levels have been disappointing in Kansas with mixed yields so far. Europe and the Black Sea area continues to see warm and dry temperatures for the immediate future with some relief potentially offered into early July for western Europe. The dollar has slid back to the lower end of the range which should help export competitiveness. On the July Kansas City contract support is the 10-day at $4.64 with the 200-day at $4.51 below that with resistance the recent high at $4.81.

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

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