DTN Midday Grain Comments 06/07 11:22

DTN Midday Grain Comments 06/07 11:22 Corn, Beans Lower at Midday Wheat remains the leader at midday as early gains fizzle in row crops. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are mixed with the Dow futures up 115 points. The interest rate products are mixed. The dollar index is 30 points lower. Energies are firmer with crude up 1.15 cents. Livestock trade is mixed. Precious metals are flat with gold up $0.50. CORN Corn trade is 1 to 2 cents lower at midday with early gains fading again with spillover pressure from the soybeans and a lack of fresh bullish news with a new low for the July being scored. Forecasts remain mixed with better rains expected with the warm conditions in the near term. The second crop areas of Brazil are getting closer to the end of the growing season with continued nearby dry weather with production estimates edging lower again. Ethanol futures have edged lower again as margins see a boost from stronger energy this morning. Basis has been flat to firmer in recent days with the lower board. Weekly export sales were ok at 838,600 metric tons and 418,300 of new. On the July chart we remain below the 200-day, at $3.82 which is now nearby resistance and we are just below overnight then the 100-day at $3.87. Nearby support is the $3.77 fresh four-month low scored this morning. SOYBEANS Soybean trade is 8 to 12 cents lower at midday with trade seeing broad selling returning during the day session with better weather and trade concerns weighing on the market. Meal is $5 to $6 lower and oil is 10 to 20 points higher. Crush margins have narrowed but remain positive with the weaker beans, with meal drifting back to the $360 level. Bean basis has remained steady, with trade likely to remain quiet in the near term as old crop exports remain slow. Brazil continues to move bushels despite the labor unrest. Weekly export sales were disappointing at 164,800 metric tons of old crop, 34,700 of new, 131,200 of meal, and 10,000 of oil. On the July chart, trade is back below all the major moving averages with the 20-day at 10.17 the first level of resistance with support at the morning low of $9.83. WHEAT Wheat trade is 1 to 4 cents higher at midday with the sharp early gains fading again with the row crops dragging trade lower with little fresh news as harvest expands. Warmer weather should allow early harvest to progress quickly with the lagging maturity catching up with the continued warm weather, which tends to limit yields but early protein numbers remain average to strong. Spring wheat should see better progress with warmer weather helping to catch up emergence. Australia should see some improvement but overall remains mixed. The Black Sea remains on the dry side near term, with Siberia trending cooler and wetter again. HRW basis has improved ahead of the anticipated harvest expectations. Weekly export sales remained soft at -19,500 of new crop and 240,700 of old crop. On the July Kansas City, we moved above the 10-day and highest major moving average at $5.44 overnight but are back just below at midday; next resistance is the upper Bollinger Band at $5.64. Support is the $5.33 20-day moving average. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at [email protected] Follow him on Twitter @davidfiala (BAS) Copyright 2018 DTN/The Progressive Farmer. All rights reserved.