DTN Midday Grain Comments 06/14 11:29

DTN Midday Grain Comments 06/14 11:29 Grains Higher at Midday Wheat leads at midday, with row crops marginally higher. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow up 5 at midday. The interest rate products are higher. The dollar index is 50 lower ahead of the Fed statement today. Energies are lower with crude down 1.70. Livestock trade is sharply lower on cattle, mixed on hogs. Precious metals are mixed with gold up $9.90. CORN Corn trade is a penny higher at midday with trade finding spillover support from wheat. Weather opinions remain mixed which has kept the market from breaking further this week after the sell off on Sunday night. The second week pattern is still inconsistent; the market is watching forecasts closely with a potential tropical storm in the gulf making things interesting. The weekly ethanol production report showed production fractionally higher, with stocks 2.5% higher, and gasoline demand down .5% on the week. Ethanol futures have edged lower at midday with corn higher hurting ethanol production margin. On the July corn contract resistance is at new high for the move at $3.91 1/2 printed on Thursday. Chart support is at the $3.79 10-day, then the 20-day at $3.75. SOYBEANS Soybean trade is 3 cents higher at midday with trade continuing to chop around the recent range. Meal is $1.50 to $2.50 higher and oil is flat to 10 points higher. South America should continue to push bushels into the world export market but currency fluctuations could continue to rattle things with the US gaining competitiveness. Rains should help to even out struggling stands in some spots but continued follow up action will be needed. The need for soybean re-plants is one concern that has limited downside since we hit the 14-month low on May 31. July beans have support at the 10-day at $9.28 then the $9.09 1/2 14-month low, with the 20-day at $9.36 nearby resistance then the 50-day at $9.51. WHEAT Wheat trade is 3 to 8 cents higher at midday with Minneapolis wheat continuing to lead with the illustrated bias that the recent rains were too late to prevent widespread losses. Winter wheat harvest will expand this week with early yields continuing to be a bit disappointing. Protein will continue to be a major driver coming forward with the line between milling and feed wheat important. Western Europe looks to be warmer and drier in the near term as well with some improvement in the Black Sea area. The dollar continues to track the lower end of the range, but the Black Sea continues to dominate export business for now. On the July Kansas City contract support is the 200-day at $4.50 with resistance the overnight high at $4.68. 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.