DTN Midday Grain Comments 06/09 10:57

DTN Midday Grain Comments 06/09 10:57 All Grains Higher at Midday Trade is higher across the board ahead of the report. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow up 100 at midday. The interest rate products are lower. The dollar index is 40 points higher. Energies are higher with crude up 0.40. Livestock trade is mixed. Precious metals are mixed with gold down $9.20. CORN Corn trade is 1 to 3 cents higher at midday with trade squaring ahead of the report. The USDA will release its updated balance sheets at 11 AM; trade should remain active going into the weekend between the report and the forecast. Expectations for old crop carry out are 2.282 billion bushels, new crop at 2.084 billion, and world at 223.9 million metric tons. Old crop adjustments are more likely than new crop changes at this point with the crop maturity normal and crop conditions generally good. 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. On the July contract resistance is at new high put in this morning at $3.91 1/2. Chart support is at the $3.76 10-day, then the 20-day at $3.72. SOYBEANS Soybean trade is 2 to 5 cents higher at midday with light buying during the day session ahead of the report. Meal is $1 to $2 higher and oil is 10 to 20 points. The USDA report this morning 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. Expectations are for 433 million bushel carryout on old crop, 498 million on new, and 2world at 90.5 million metric tons. The potential for higher acreage should limit upside but weather will still trump overall market direction. The USDA announced 201,000 metric tons of new crop sold to unknown. July beans have support at the 10-day at $9.24, with the 20-day at $9.40 as the next round higher which we are just below at overnight. WHEAT Wheat trade is 2 to 9 cents higher ahead of the report with spring wheat leading on concerns about heat this weekend. The report is expected to confirm ample world supplies, although they should shift a bit lower with US production lowered from storm damage and reduced acres. Old crop carryout is expected to be at 1.16 billion bushels, new crop at 909 million, and world at 255.2 million metric tons. The dollar is back above the 97 mark on the index. Harvest should expand rapidly this week with warmer weather speeding maturity across the plains. 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. On the July Kansas City contract, support is the 50-day at $4.35, and support the 200-day at $4.50, which we tested overnight 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.