DTN Midday Grain Comments 06/08 11:15

DTN Midday Grain Comments 06/08 11:15 All Grains 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 with the down up 20 at midday. The interest rate products are lower. The dollar index is 15 points higher. Energies are narrowly mixed. Livestock trade is mixed. Precious metals are mixed with gold down $14.90. CORN Corn trade continues to move higher at midday up 5 to 7 cents with buying continuing with the ongoing weather concerns. 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. Old-crop adjustments are more likely than new crop changes at this point. The forecast looks to remain warmer than normal in the near term with the models split on rain potential coming forward. Ethanol margins are under pressure with the firmer corn and weaker unleaded values, although basis will continue to widen out on bigger movement as corn comes to town. Weekly export sales were disappointing at 348,600 of old crop and 128,000 of new crop. On the July contract resistance is at new high put in this morning at $3.91 1/2. Chart support is at the $3.75 10-day, then the 20-day at $3.72. SOYBEANS Soybean trade is 11 to 16 cents higher at midday with trade following the lead of the corn and wheat overnight with trade continuing to worry about the forecast while demand indicators remain mixed. Meal is $4.50 to $5.50 higher and oil is 25 to 35 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. The weekly export sales were mediocre at 159,100 of old crop, 221,000 metric tons of new crop, 84,900 of old meal, 14,800 of new meal, and 17,600 of oil. July beans have support at the 10-day at $9.24, with the 20-day at $9.42 as the next round higher which we have edged above at midday. WHEAT Wheat trade is 10 to 25 cents higher at midday with trade working though nearby resistance levels even as harvest continues to expand with weather concerns helping Minneapolis trade regain the lead. Dollar trade remains in the lower end of the range but has firmed a little bit through midweek. Harvest should expand rapidly this week with warmer weather speeding maturity. 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. Russian winter wheat estimates are in the 67-71 million metric ton range. Weekly export sales were OK at 26,800 metric tons of old crop, and 461,000 metric tons of new crop. On the July Kansas City contract support is the 50-day at $4.35, and resistance the 200-day at $4.50, which we moved above this morning and the spring high at $4.74 the next level of resistance. 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.