DTN Midday Grain Comments 07/03 11:29

DTN Midday Grain Comments 07/03 11:29 All Grains Higher at Midday The grain trade is sharply higher at midday led by wheat and soybeans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow up 190. The interest rate products are lower. The dollar index is 54 points higher. Energies are higher with crude up 0.75. Livestock trade is mixed with hogs leading. Precious metals are lower with gold down $21.30. CORN Corn trade is 12 to 14 cents higher at midday with trade finding support on spillover from wheat, with all eyes on weather forecasts coming forward. Short session with trade running until noon so should see an exciting finish ahead of the holiday. The June Planting Intentions number came in at 90.89 million acres versus 89.8 expected and range of expectations from 89 to 90.6 million. The June 1 Quarterly Stocks were at 5.225 billion bushels versus 5.160 expected so the numbers on Friday were actually negative so today the trade is saying higher trade after a negative report is a bullish sign. This is bringing in some emotion. The weekly export inspections were improved at 1.094 million metric tons. The weekly conditions are expected to be delayed until Wednesday. December corn has support at the $3.90 3/4 20-day. Resistance is the $4.09 12-month high printed 3 weeks ago. Trade will reopen Wednesday morning at 8:30 AM. SOYBEANS Soybean trade is 28 to 32 cents higher at midday with supportive follow-through after the USDA report with the weather pattern becoming viewed as more supportive for soybeans. Meal is $9 to $10 higher, and oil is 45 to 55 points higher. The USDA June Planting Intensions number was at 89.51 million acres versus 89.95 expected and 89.48 on the March report. The June 1 Quarterly Stocks estimate was at 963 million bushels versus 981 expected and 872 million a year ago. The USDA numbers were supportive versus expectations but no particular large difference; so the strength today is noted as chart momentum and weather premium. The lower June stocks should lead to a reduction in the July USDA WASDE carryover, but no major change. The weekly export inspections were softer at 266,382 metric tons. On the November chart support is now at the $9.45 50-day, then the $9.33 20-day moving average; resistance is now the recent highs at $9.89 with trade moving through the 200-day at $9.81 this morning. WHEAT Wheat trade is 30 to 36 cents higher at midday with Minneapolis moving through the $8 level. Spring wheat weather concerns are continuing to drive trade while winter wheat harvest contracts are getting pulled higher. The USDA had the June 1 wheat stocks 30 million greater than expected at 1.184 billion bushels. The all wheat planted area was 45.66 million acres versus 46.05 expected. Spring wheat was at 10.90 million acres versus 11.23 expected and 11.61 a year ago. The July WASDE report will provide further direction on yields, along with the statues of the European and Russian crops that have declined in recent weeks. The weekly export inspections were okay at 505,031 metric tons. On the December Kansas City contract, support is the 20-day at $5.04 with resistance at $5.90 which was a high printed last June. 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.