DTN Midday Grain Comments 06/30 10:58

DTN Midday Grain Comments 06/30 10:58 All Grains Higher at Midday The grain trade is firm at midday ahead of the USDA acreage and stocks numbers. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow up 40. The interest rate products are mostly lower. The dollar index is 11 points higher. Energies are mixed with crude up 0.50. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold down $2.60. CORN Corn trade is 7 to 9 cents higher at midday ahead of the reports with trade finding spillover support from wheat. Position squaring ahead of the report along with heat concerns in the extended forecast are also noted for our strength. The heat placement in the extended forecast is getting attention but we also continue to see good moisture for the central part of the belt in forecasts. Looking to the report, 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. September corn futures have support at the 10-day moving average at $3.71 which we moved above overnight, with the $3.80 20-day moving average next resistance. SOYBEANS Soybean trade is 2 to 5 cents higher at midday with trade slowly building some positive momentum ahead of the pending report with acreage concerns still limiting upside. Meal is $1.50 to 2.50 higher and oil narrowly mixed. The heat in the extended forecast is also limiting downside in the near term. 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 since 1983, when the farm program seriously limited corn acres and frankly the first year they have been close to each other since then. The June 1 stocks are expected to be at 981 million bushels versus 872 a year ago. September beans have support at the 9.22 10-day moving average, with the 20-day at $9.29 just above the market. WHEAT Wheat trade is 16 to 22 cents higher with continued buying tied to the spring wheat conditions along with harvest pressure from a smaller crop starting to fade on the winter wheat. 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 yesterday. The average trade guess for the all wheat planted number this morning 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. French wheat conditions declined another 3% helping to add further support. On the September Kansas City contract, support is the 10-day at $4.87, with resistance the new morning high at $5.20. 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.