DTN Midday Grain Comments 06/15 11:20

DTN Midday Grain Comments 06/15 11:20 Grains Mixed at Midday Trade is mixed in quiet action at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 26 at midday. The interest rate products are lower. The dollar index is 50 higher after the Fed Statement yesterday. Energies are mixed with crude down 0.20. Livestock trade is mixed. Precious metals are lower with gold down $19.90. CORN Corn trade is 2 to 4 cents lower at midday with additional selling pressure developing overnight with fresh storms moving through the center of the belt Trade is about 4 cents off the lows at midday so the downward momentum has stalled. The weather pattern looks to bring more rain but heat could return in the second week depending on what model is favored. Ethanol margins are still under pressure with tepid gasoline demand and soft energy prices with ethanol futures edging higher this morning. The weekly export sales remained soft at 600,700 metric tons of old crop, and 13,500 of new. On the July corn contract resistance is at the 10-day at $3.79 with the 20-day of $3.74 as support. SOYBEANS Soybean trade is 1 to 4 cents higher at midday with trade bouncing off the overnight lows by nearly a dime. Meal is narrowly mixed and oil is 30 to 40 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 losing ground on the dollar bounce. NOPA crush will be out this morning with the trend towards weaker data on recent months. 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 31st. The weekly export sales were good seasonally at 304,200 metric tons of old crop, 314,000 of new, 166,800 metric tons of old meal, 110,400 of new meal, and 30,300 of oil. July beans have support at the $9.09 1/2 14-month low, with the 20-day at $9.32 nearby resistance which we are just above at midday then the 50-day at $9.51. WHEAT Wheat trade is 2 lower to 5 higher at midday with volatile action Minneapolis being the headline this morning with a 18 cents range, while the winter wheat have ground higher off the overnight weakness. Winter wheat harvest continues to expand in Kansas with most of the action still south of I-70. Protein will continue to be a major driver coming forward with the line between milling and feed wheat important with early protein running on the light side but generally making the lower end of the standards. 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. The weekly export sales were disappointing at 373,400 metric tons. On the July Kansas City contract support is the 200-day at $4.50 with resistance the weekly 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.