DTN Midday Grain Comments 06/29 11:07

DTN Midday Grain Comments 06/29 11:07 Wheat Leads Grains Higher at Midday Minneapolis wheat leads trade broadly higher at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are weaker with the Dow down 110. The interest rate products are lower. The dollar index is 31 points lower. Energies are mixed with crude up 0.30. Livestock trade is mostly higher with hogs leading. Precious metals are mixed with gold down $4.90. CORN Corn trade is 3 to 5 cents higher at midday with trade finding light buying on spillover support from soybeans and wheat, and position squaring ahead of the report, along with heat concerns in the extended forecast. The heat placement in the extended forecast is getting attention but with moisture and mild temperatures this week we have not bounced much off the lows. Looking to Friday, the average trade guess for the June USDA Planting Intentions is 89.82 million acres versus 89.996 in March and 94.004 a 2016. The range of estimates is 89-90.6 million acres. The June 1 Quarterly Grain stocks report is expected to have corn at 5.16 billion bushels versus 4.711 billion a year ago. Ethanol margins have a gotten a bit of a boost from the firmer energy complex this week. Weekly export sales were a bit disappointing at 316,200 metric tons of old crop, and 68,400 of new. July corn futures have support at the new low printed Friday at $3.56 with resistance at the $3.65 10-day moving average. SOYBEANS Soybean trade is 4 to 8 cents higher overnight with trade slowly building some positive momentum ahead of the pending report with oversold conditions still in place. Meal is $1.50 to 2.50 higher and 15 to 25 points higher. The heat in the extended forecast is also limiting downside this week after the pressure last week. Looking to Friday, the USDA June Planting Intentions expectations are limiting upside with the average trade guess at 89.95 million acres versus 89.5 million on the March report and up from 83.4 million a year ago. This would be the first year soybean acreage surpasses corn and frankly the first year they have been close to each other. The June 1 stocks are expected to be at 981 million bushels versus 872 a year ago. Weekly export sales were ok seasonally at 312,400 metric tons of old crop, 2,000 of new, 38,000 metric tons of old crop meal, 21,400 of new crop meal, and 12,600 of oil. July beans have major support at the $9.00 14-month low made last week, with the 10-day at $9.18 first resistance, which we are just above at midday with the 20-day at $9.24 as the next resistance. WHEAT Wheat trade is 18 to 50 cents higher at midday with Minneapolis trade surging to new highs again and briefly traded 60 higher. The poor spring wheat crop and short covering appears to promise us an active Minneapolis market the rest of the week, especially with little weather improvement for the Dakota's, Montana, and the Canadian prairie in the near term, and margin changes effective this afternoon. The average trade guess for the all wheat planted number on Friday is at 46.045 million acres versus 46.059 on the March report. The June 1 Quarterly Wheat stocks are expected to be at 1.154 billion versus 976 billion a year ago. The spring wheat acreage estimate is at 11.234 versus 11.308 on the March report. Winter wheat harvest should continue to progress this week with isolated storm delays and mixed yields, with the weaker dollar helping competitiveness on the export market coming forward. Europe conditions will continue to be watching with estimates in retreat. The weekly export sales were a little soft at 492,100 metric tons. On the July Kansas City contract support is the 100-day at $4.52 with resistance the 10-day at $4.65, which we moved above this morning, and $4.81 the next level from there. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2017 DTN/The Progressive Farmer. All rights reserved.