DTN Midday Grain Comments 06/07 11:19

DTN Midday Grain Comments 06/07 11:19 Corn, Beans Higher at Midday Trade is higher across the board at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are flat to slightly higher at midday. The interest rate products are lower. The dollar index is 5 points lower. Energies are lower with crude down 2.05. Livestock trade is mostly higher. Precious metals are mixed with gold down $1.70. CORN Corn trade is 6 to 9 cents higher at midday with the July trading above $3.80 for the first time in a couple of months with concerns about the warm and dry nearby weather pattern. The USDA will release its updated balance sheets on Friday; that should have us set up for an active Friday coupled with forecasts in front of summer weekend. Some warmer temperatures are good for the crop echoed by the 3% improvement in ratings, but some of the market will see it as stressful especially with some areas getting dry. Ethanol production was 2.1% lower, and stocks were 3.4% lower which has ethanol futures working higher. Blender margins are under pressure from the sliding unleaded values, and the firmer corn price works against processors but basis is generally turning weaker with the futures rally. On the July contract resistance is at new high put in this morning at $3.87. Chart support is at the $3.71 20-day, then the 5-month low of $3.60 3/4. SOYBEANS Soybean trade is 6 to 10 cents higher at midday with light buying continuing on weather concerns and spillover support from corn. Meal is $5 to $6 higher and oil is 10-20 points higher. The USDA report on Friday is not expected to show much change for beans due to the early stage of the crop; most believe soybean acreage will go higher on the June Planting Intentions report at the end of the month. The potential for higher acreage should limit upside but weather will still trump overall market direction. Negative items should be fairly priced in for the near term. July beans have support at the 10-day at $9.25, with the 20-day at $9.43 as the next round higher. WHEAT Wheat trade is mixed with the winter wheats leading this morning up 5 to 9 cents while Minneapolis is narrowly mixed with some rains expected for North Dakota in the near term helping to limit spring wheat with harvest continuing to expand this week for winter wheat with mixed results so far. Dollar trade remains soft as well adding support. Harvest should expand rapidly this week. Protein premiums should remain active with still plenty of poor quality wheat that needs to be blended off from prior crops. Egypt continues to refine their ergot restrictions. On the July Kansas City contract support is the 50-day at $4.35, and resistance the 200-day at $4.50. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.