DTN Midday Grain Comments 06/02 10:48

DTN Midday Grain Comments 06/02 10:48 Grain Futures Looking Up Midday Thursday Corn trade is 2 to 6 cents higher; beans are 23 to 30 cents higher and wheat is 11 to 25 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn trade is 2 to 6 cents higher; beans are 23 to 30 cents higher and wheat is 11 to 25 cents higher. The U.S. stock market is mixed with the S&P up 15 points. The U.S. Dollar Index is 0.60 lower. Interest rate products are firmer. Energies are mixed with crude up $0.75 and natural gas down $0.20. Livestock trade is firmer. Precious metals are firmer with gold up $23.50. CORN: Corn trade is 2 to 6 cents higher at midday Thursday as it works to find footing after the early week washout, along with better support from wheat and soybeans Thursday morning, with other fresh bullish news remaining limited. The export wire has been quiet with trade looking for when value buyers start to show up again while basis has shown some short-term strength. The ethanol margins should improve with blender margins and corn in the lower end of the range with production surging ahead of Holiday travel by 57,000 barrels per day, while stocks were sharply lower by 751,000 barrels. The second crop in Brazil will head for the homestretch while the U.S. weather continues to keep moisture in much of the belt with cooler than normal weather to linger in the North, although drier in the short term. On the July contract chart, we have resistance at the lower Bollinger Band at $7.39 that we have faded below with the $7.20 area we hit as a low Wednesday as first support then $7.00. SOYBEANS: Soybean trade is 23 to 30 cents higher with firmer spread action as trade works to consolidate back above $17.00 after spillover from grains limited action so far this week along with export pace picking up at 352,000 metric tons. Meal is $1.00 to $2.00 higher and oil is 1.90 cents to 2.00 cents higher. South America is moving towards post-harvest footing at this point, with planting to remain sluggish with drier weather to help in the north while the later planting areas in the South remain wet short term. Basis has held strength well at processors and exporters with signs of better movement as exports pick up. On the July soybean chart, we are still solidly above the 20-day at 16.65 with the fresh high and the upper Bollinger Band well above current action at $17.44 and $17.49 3/4. WHEAT: Wheat trade is 11 to 25 cents higher at midday with short covering after the washout to start the week, along with India taking steps to slow short-term grain movement and little other fresh news. Early harvest in the U.S. will spread with weak yields expected on the southern acres with broad harvest progress still a couple weeks off. The dollar continues to hold in the upper end of the range. Warmer weather on the Plains should help maturity, while the North will remain cool with less rain in the short term. KC wheat is back to a 53-cent discount to Minneapolis in narrower action, and 90-cent premium to Chicago, as it firms Thursday morning. The KC July chart has support at the lower Bollinger Band at $10.94 after sliding to a multiweek low at $11.12 1/2 and bouncing off that Wednesday, with the 20-day well above the market at $12.34. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.