DTN Midday Grain Comments 06/14 10:52

DTN Midday Grain Comments 06/14 10:52 Corn, Wheat Futures Lower at Midday; Soybeans Mixed Corn futures are 1 to 6 cents lower at midday Tuesday; soybean futures are narrowly mixed; wheat futures are 11 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 6 cents lower at midday Tuesday; soybean futures are narrowly mixed; wheat futures are 11 to 18 cents lower. The U.S. stock market is lower with the S&P down 12 points. The U.S. Dollar Index is 250 points higher. Interest rate products are weaker. Energies are mixed with crude up 2.30 and natural gas down 1.35. Livestock trade is mixed with hogs leading. Precious metals are weaker with gold down 16.00. CORN: Corn futures are 1 to 6 cents lower at midday with weaker spread action as trade continues to consolidate the recent range as we wait on further weather developments along outside markets needing to limit spillover pressure. Ethanol margins are likely to remain rangebound as unleaded holds the upper end of the range along with corn to support blender margins with gains so far Tuesday. 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, while U.S. weather continues to keep moisture in much of the Corn Belt short term with warmer and drier weather expected into the end of June, which will support crop development initially but can turn into a bigger issue quickly. Weekly crop progress showed planting at 97%, same as average, with emergence at 88% versus 89% on average, and good to excellent at 72%, down 1%, and 5% poor to very poor. On the July contract chart, we have support at the lower Bollinger Band at $7.24, which we bounced back from early in the week, with trade pushing back through the $7.65 20-day moving average, which we are testing at midday, and then $8.00 as the next resistance area. SOYBEANS: Soybean futures are narrowly mixed with spread action firmer as trade works to hold nearby support after the Monday washout with moves in both directions failing so far. Mea1 is $2.00 to $3.00 lower, and oil is 20 to 40 points lower. South America is moving toward post-harvest footing at this point, with planting wrapping up except for double crop with warmer weather to push the crop along. Weekly crop progress showed soybeans 88% planted, same as average, and 70% emerged versus 74% on average, and 70% good to excellent and 5% poor to very poor, right in line with expectations. Basis has held strength well at processors and exporters in recent days. On the July soybean chart, we are back testing the 20-day moving average at $17.08 as support with the fresh high and the Upper Bollinger Band above the current action at $17.63 and $17.84. WHEAT: Wheat futures are 11 to 18 cents lower at midday with choppy action continuing as harvest will expand this week and we see little change short term to the political situation. Warmer Plains weather should continue to catch maturity up with harvest at 10% versus 12% on average and 86% headed versus 90% on average with 31% good to excellent and 42% poor to very poor, slightly improved. Spring wheat was 94% planted versus 99% on average, 72% emerged versus 93% on average and 54% good to excellent, and 9% poor to very poor to start. The dollar continues to hold in the upper end of the range to affect export business with action just off the highs for now. KC wheat is back to a 63-cent discount to Minneapolis in weaker action, and 90-cent premium to Chicago in flat action. The KC July chart has support at the multi-week low at $11.12 1/2, with the 20-day well above the market at $12.06. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.