DTN Midday Grain Comments 06/18 11:38

DTN Midday Grain Comments 06/18 11:38 Corn, Wheat Lower at Midday Soybeans are slightly higher at midday, corn and wheat remain weak. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow down 160 lower. The interest rate products are flat to higher. The dollar index is 5 points higher. Energies are narrowly mixed with crude flat. Livestock trade is mostly higher. Precious metals are mixed with gold up $2.70. CORN Corn trade is 3 to 4 cents lower at midday with trade trying to follow the lead of soybeans and firm back from the fresh lows scored this morning with the wet near-term forecast. Harvest should continue to expand in the double crop areas of Brazil. Ethanol margins are stable with lower corn and energy prices. Basis has been flat to firmer in recent days with the lower board. The weekly export inspections were strong again at 1.66 million metric tons. Weekly crop progress is expected to show steady to slightly lower conditions, and progress remaining ahead of normal. On the July chart we remain below the 10-day, at $3.75 which is now nearby resistance and then the 200-day at $3.82. Nearby support is the $3.54 fresh low from this morning. SOYBEANS Soybean trade is flat to 4 cents higher at midday with trade bouncing solidly off the fresh lows scored at the open of the day session with the continued trade concerns. Meal is flat to $1 higher and oil is flat to 10 points higher. Bean basis has remained steady, with trade likely to remain quiet in the near term as old crop exports remain slow with Brazilian values rising rapidly on the anticipation of increased Chinese business. We remain well away from the key soybean weather time frame keep concerns limited for now. Brazil continues to struggle with the logistical issues compounded by the trucker strikes with a large shipping line up. Weekly export inspections were good at 818,396 metric tons. Weekly crop progress is expected to show planting complete except for double crop with emergence ahead of normal, with steady to slightly lower conditions. On the July chart, trade has support at the fresh low at 8.97 1/2, and resistance the 10-day at $9.52. WHEAT Wheat trade is 4 to 13 cents lower at midday with winter wheat harvest pressure coming out of the weekend. Wet weather for Kansas should slow harvest in the next week or so, but good progress is likely through today. Spring wheat should see better progress with warmer weather helping to catch up emergence along with more rain while Canada remains drier. Australia should see some improvement but overall remains mixed. Russian winter wheat is likely to remain on the dry side, with the spring wheat cool and wet. HRW basis has improved ahead of the anticipated harvest protein improvement and board weakness. Weekly export inspections were 372,843 metric tons. Weekly crop progress is expected to show harvest ahead of normal for winter wheat with steady conditions, and spring wheat steady to slightly better with emergence caught up to normal. On the July KC is back below the 20-day moving average at 5.19 with the 50-day at $5.31 above that. Support is the $4.96 200-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.