DTN Midday Grain Comments 06/09 11:08

DTN Midday Grain Comments 06/09 11:08 Corn, Soybean Futures Higher at Midday; Wheat Lower Corn futures are 5 to 17 cents higher at midday Thursday; soybean futures are 12 to 36 cents higher; wheat futures at 8 to 11 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 17 cents higher at midday Thursday; soybean futures are 12 to 36 cents higher; wheat futures at 8 to 11 cents lower. The U.S. stock market is weaker with the S&P down 25 points. The U.S. Dollar Index is 45 points higher. Interest rate products are weaker. Energies are mixed with crude down .40 and natural gas down .10. Livestock trade is mixed with cattle leading. Precious metals are weaker with gold down 12.00. CORN: Corn futures are 5 to 17 cents higher at midday with trade firming off overnight weakness with sharply stronger spread action as it follows the lead of the soybeans heading toward the WASDE report Friday. Weekly export sales improved slightly at 280,400 metric tons (mt) of old crop and 73,500 mt of new. The ethanol margins are likely to remain rangebound as unleaded holds the upper end of the range, along with corn to support blender margins. The second crop in Brazil will head for the homestretch with CONAB estimates keeping production 25 million metric tons (mmt) ahead of last year 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, which should boost crop development at first. The WASDE report is expected to show old-crop carryout at 1.437 billion bushels (bb) and new at 1.340 bb, down slightly from last month with yields remaining steady for this fall. 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 trade pushing back through the $7.69 20-day moving average with $8.00 the next resistance area. SOYBEANS: Soybean futures are 12 to 36 cents higher at midday with sharply stronger spread trade leading us back from early weakness to score fresh highs again with expectations of old-crop demand and pre-report positioning moving trade. Mea1 is $11.00 to $12.00 higher and oil is 55 to 65 points lower. 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 with 143,000 mt of mostly new crop sold to unknown. Weekly export sales improved at 429,900 mt of old crop and 595,300 mt of new, with meal at 134,400 of old crop and 8,700 of new and 1,300 of oil. On the WASDE report, old-crop carryout is expected to be at 218 mb, and new at 307 mb both down slightly from last month. On the July soybean chart, we are still solidly above the 20-day moving average at $16.94 with the fresh high and the Upper Bollinger Band above the current action, both at $17.58. WHEAT: Wheat futures are 8 to 11 cents lower at midday with early strength fading as Russian production estimates rise ahead of harvest with little fresh progress on export corridors with day session following row crops a bit higher off the overnight lows. 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 effect export business. Weekly export sales showed more strength at -27,500 mt of old crop, but 451,000 mt of new crop as we start the marketing year. The WASDE report is expected to show wheat carryout at 666 mb of old crop and 614 of new, down slightly from last month with winter wheat production edging lower. The north should begin warming to help development of the crop after the slow start. KC wheat is back to a 74-cent discount to Minneapolis in firmer action, and an 85-cent premium to Chicago, in firmer 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 $12.26. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.