DTN Midday Grain Comments 06/03 10:53

DTN Midday Grain Comments 06/03 10:53 Soybean, Wheat Futures Lower at Midday; Corn Mixed Corn futures are narrowly mixed at midday Friday; soybean futures are 18 to 27 cents lower; wheat futures are 8 to 20 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are narrowly mixed at midday Friday; soybean futures are 18 to 27 cents lower; wheat futures are 8 to 20 cents lower. The U.S. stock market is weaker with the S&P down 70 points. The U.S. Dollar Index is 30 points higher. Interest rate products are weaker. Energies are firmer with crude up 2.25 and natural gas up .05. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold down 13.50. CORN: Corn futures are narrowly mixed with flat spread action as trade works to build support near the recent lows as we head toward the weekend with negative spillover from wheat and soybeans. The daily export wire finally showed some life with 101,600 metric tons (mt) sold to unknown. Basis has shown some short-term strength. Weekly export sales were poor at 185,800 mt of old crop and 48,700 mt of new. The ethanol margins should improve with blender margins versus unleaded and corn in the lower end of the range as stocks moderate. The second crop in Brazil will head for the homestretch while the U.S. weather continues to keep moisture in much of the Corn Belt with cooler than normal temperatures for many, slowing development. On the July contract chart, we have resistance at the lower Bollinger Band at $7.33 that we are just below overnight with the $7.20 area we hit as a low Wednesday as first support, then $7.00. SOYBEANS: Soybean futures are 18 to 27 cents lower with softer spread action as the Thursday rebound fades and we settle back into the middle part of the range with little other fresh news. Meal is $3.50 to $4.50 lower and oil is flat to 20 points higher. Weekly export sales were poor at 111,600 mt of old crop; 284,000 mt of new; 188,900 of old meal and 100 of new; oil at 4,200. South America is moving toward 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 in recent days. On the July soybean chart, we are still solidly above the 20-day moving average at $16.70 with the fresh high and the Upper Bollinger Band well above current action at $17.44 and $17.49 3/4. WHEAT: Wheat futures are 8 to 20 cents lower with trade fading from early overnight strength after the rebound on Thursday with spring wheat leading so far and little fresh bullish news in recent days. 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, keeping development slow. KC wheat is back to a 69-cent discount to Minneapolis in wider action, and an 80-cent premium to Chicago, in narrower action so far. Weekly export sales were soft at 700 mt of old crop; 363,500 mt of new. The KC July chart has support at the lower Bollinger band at $10.93 after sliding to a multi-week low at $11.12 1/2 and bouncing off that midweek, with the 20-day well above the market at $12.32. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.