DTN Midday Grain Comments 06/08 10:49

DTN Midday Grain Comments 06/08 10:49 Corn, Soybean Futures Higher at Midday; Wheat Lower Corn futures are 1 to 7 cents higher at midday Wednesday; soybean futures are 16 to 17 cents higher; wheat futures are 3 to 4 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 7 cents higher at midday Wednesday; soybean futures are 16 to 17 cents higher; wheat futures are 3 to 4 cents lower. The U.S. stock market is mixed with the S&P down 5 points. The U.S. Dollar Index is 2 points lower. Interest rate products are weaker. Energies are firmer with crude up 1.15 and natural gas up .30. Livestock trade is mostly higher with live cattle leading. Precious metals are firmer with gold up 9.00. CORN: Corn futures are 1 to 7 cents higher at midday with firmer spread action as buying continues as the extended forecast shows warmer and drier possibilities along with position-squaring ahead of the Friday WASDE report with trade fading off the early test of resistance. The daily export wire has been quiet again to start the week. Ethanol margins are likely to remain rangebound as unleaded holds the upper end of the range along with corn. The weekly ethanol report showed production down 31,000 barrels per day (bpd), and stocks up by 675,000 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 warmer and drier weather expected for many the second week which should boost crop development at first. On the July contract chart, we have support at the lower Bollinger Band at $7.23, which we bounced back from early in the week, with the 20-day moving average well above the market at $7.69, which we tested this morning before fading. SOYBEANS: Soybean futures are 16 to 17 cents higher at midday as buying carries action back to the contract highs with firm spread action turning flat and product support fading a bit. Mea1 is narrowly mixed and oil is 115 to 135 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 with the warmer second week to boost growth at first. 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 above the current action at $17.54 and $17.61. WHEAT: Wheat futures are 3 to 4 cents lower at midday with trade seeing two-sided action as early harvest will mix with European weather and trade waiting to see if any real progress comes from export talks. 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 when drier weather should help. The U.S. dollar continues to hold in the upper end of the range to affect export business. The north should begin warming to help development of the crop after the slow start. KC wheat is back to an 81-cent discount to Minneapolis in wider action, and 76-cent premium to Chicago, in flat action. 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.