DTN Midday Grain Comments 06/10 10:43

DTN Midday Grain Comments 06/10 10:43 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 2 to 3 cents lower at midday Friday; soybean futures are 18 to 20 cents lower; wheat futures are 2 to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 3 cents lower at midday Friday; soybean futures are 18 to 20 cents lower; wheat futures are 2 to 9 cents lower. The U.S. stock market is weaker with the S&P down 105 points. The U.S. Dollar Index is 95 points higher. Interest rate products are weaker. Energies are weaker with crude down 2.40 and natural gas down .27. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up 8.00. CORN: Corn futures are 2 to 3 cents lower with rangebound action likely to continue until the WASDE report release at 11 a.m. CDT with a negative outside environment after the inflation report. Ethanol margins are likely to remain rangebound as unleaded holds the upper end of the range along with corn to support blender margins with slight contraction Friday. Basis remains solid through most of the Corn Belt. The second crop in Brazil will head for the homestretch with the export season to ramp up soon. U.S. weather continues to keep moisture in much of the Corn Belt short term 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 $7.67 20-day moving average Thursday with $8.00 the next resistance area. SOYBEANS: Soybean futures are 18 to 20 cents lower at midday with spread action flattening out and old- and new-crop action still in the upper end of the range amid the weaker commodity action overall. Mea1 was .50 to $1.50 lower, and oil is 165 to 175 points lower, with meal leading the crush complex in recent days. 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 warmer the second week to boost growth. Basis has held strength well at processors and exporters in recent days with the daily wire quiet to end the week. On the WASDE report, old-crop carryout is expected to be at 218 million bushels (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 $17.03 with the fresh high and the Upper Bollinger Band above the current action at $17.74 and $17.84, respectively. WHEAT: Wheat futures are 2 to 9 cents lower with trade working sideways as we continue to carve out a nearby range ahead of broader harvest progress and little change to the world situation. Early harvest in the U.S. will spread with weak yields expected on the southern acres; broad harvest progress will likely wait until next week when drier weather should help. The dollar continues to hold in the upper end of the range to affect export business with action moving back toward the highs Friday. The WASDE report is expected to show wheat carryout at 666 mb of old crop and 614 mb 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 73-cent discount to Minneapolis in wider action and an 86-cent premium to Chicago in firmer action. The KC July chart has support at the lower Bollinger band at $10.70 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 $12.21. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.