DTN Midday Grain Comments 06/07 11:01

DTN Midday Grain Comments 06/07 11:01 Corn, Soybean Futures Higher at Midday; Wheat Lower Corn futures are 9 to 12 cents higher at midday Tuesday; soybean futures are 13 to 27 cents higher; wheat futures are 6 to 26 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 9 to 12 cents higher at midday Tuesday; soybean futures are 13 to 27 cents higher; wheat futures are 6 to 26 cents lower. The U.S. stock market is flat with the S&P down 3 points. The U.S. Dollar Index is 5 points lower. Interest rate products are firmer. Energies are mixed with crude up .70 and natural gas down .02. Livestock trade is mixed. Precious metals are mixed with gold up 9.00. CORN: Corn futures are 9 to 12 cents higher at midday with trade bouncing back from early weakness as it digests the first condition report coming in on the high side of estimates, along with continued short-covering and position-squaring as we build a short-term range. The daily export wire was quiet again. 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 for summer. 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 warmer and drier weather expected for many the second week. Weekly USDA Crop Progress showed planting at 94% last week versus 98% on average; 78% emerged versus 81% on average; and 73% good to excellent, 4% poor to very poor versus 68% good to excellent expected. On the July contract chart, we have support at the lower Bollinger Band at $7.23, which we moved above Monday with the 20-day moving average well above the market at 7.69. SOYBEANS: Soybean futures are 13 to 27 cents higher at midday with buying building during the day session to move us back to the upper end of the range with sharply firmer spread action. Mea1 is $5.00 to $6.00 higher and oil is 15 to 25 points higher. 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. Weekly Crop Progress showed 78% planted versus 79% on average with emergence at 56% versus 59% on average; conditions delayed until next week. 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 $16.78 with the fresh high and the Upper Bollinger Band well above current action at $17.49 3/4 and $17.54. WHEAT: Wheat futures are 6 to 26 cents lower at midday with trade working to consolidate the Monday gains with early buying fading as longs remain jumpy ahead of export talks in Turkey along with other Northern Hemisphere harvest pressing forward with weather stabilizing. 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 U.S. 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 an 82-cent discount to Minneapolis in wider action, and a 75-cent premium to Chicago, in flat action. Weekly crop progress showed winter wheat conditions at 30% good to excellent and 40% poor to very poor, up 1% with 79% headed versus 84% on average, and 5% harvested versus 6% on average. Spring wheat is 82% planted versus 99% last year, and 55% emerged vs. 83% on average. The KC July chart has support at the lower Bollinger band at $10.90 after sliding to a multi-week low at $11.12 1/2 and bouncing off that last week, with the 20-day moving average 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.