DTN Midday Grain Comments 06/06 11:03

DTN Midday Grain Comments 06/06 11:03 Corn, Wheat Futures Higher at Midday; Soybeans Mixed Corn futures are 14 to 16 cents higher at midday Monday; soybean futures are narrowly mixed; wheat futures are 54 to 60 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 14 to 16 cents higher at midday Monday; soybean futures are narrowly mixed; wheat futures are 54 to 60 cents higher. The U.S. stock market is firmer with the S&P up 30 points. The U.S. Dollar Index is 20 points higher. Interest rate products are weaker. Energies are mixed with crude down .80 and natural gas up .75. Livestock trade is weaker with hogs the downside leader. Precious metals are mixed with gold down 5.50. CORN: Corn futures are 14 to 16 cents higher at midday Monday with trade seeing short-covering after the recent weakness. Support is coming from wheat, along with position-squaring to pick up ahead of the USDA Crop Progress report this afternoon and the WASDE report later this week. The daily export wire was quiet again after seeing a sale to end last week. The ethanol margins should improve with blender margins versus unleaded and corn in the lower end of the range as stocks get closer to usual seasonal levels. The second crop in Brazil will head for the homestretch while U.S. weather continues to keep moisture in much of the Corn Belt with cooler-than-normal temperatures for many slowing development. Weekly export inspections remained solid at 1.435 million metric tons (mmt) with emergence continuing to lag as planting wraps up for the most part. The first good to excellent rating on this afternoon's Crop Progress report is expected to be above average. On the July contract chart, we have resistance at the lower Bollinger Band at $7.25, which we moved above overnight with the 20-day moving average well above the market at $7.71 with the $7.20 area we hit as a low Wednesday as first support, then $7.00. SOYBEANS: Soybean futures are narrowly mixed at midday with trade unable to keep pace with wheat and corn with a lack of fresh bean news to push trade. Mea1 is .50 to 1.50 higher, and oil is 30 to 40 points lower. South America is moving toward post-harvest footing at this point. Planting in the U.S. will remain sluggish with drier weather to help in the north while the later planting areas in the south remain wet short term, which will likely keep us behind average on the Crop Progress report Monday, along with emergence with the first condition report likely to show good to excellent near or above the 5-year average. Weekly export inspections rangebound at 350,416 metric tons (mt). Basis has held strength well at processors and exporters in recent days with more sales hitting the daily wire but nothing to start the week. On the July soybean chart we are still solidly above the 20-day moving average at $16.73 with the fresh high and the Upper Bollinger Band well above current action at $17.49 3/4 and $17.59. WHEAT: Wheat futures are 45 to 60 cents higher at midday with trade just off the highs but showing good strength. Fresh port attacks in Ukraine are raising doubts about export improvements along with oversold conditions after the recent washout and a bit drier action for mainland Europe short term. Early harvest in the U.S. will spread with weak yields expected on the southern acres with broad harvest progress likely to wait until next week. The dollar continues to hold in the upper end of the range to shift export business. Warmer weather on the Plains would help maturity, while the north will remain cool with less rain in the short-term keeping development slow. KC wheat is back to a 61-cent discount to Minneapolis in narrower action and 76-cent premium to Chicago, in narrower action as well. Weekly export inspections held steady at 352,779 mt, with crop progress expected to show steady conditions with maturity remaining behind the 5-year average while spring wheat planting and emergence continue to lag with first conditions likely near average on good to excellent. The KC July chart has support at the lower Bollinger band at $10.88 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 $12.30. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.