DTN Midday Grain Comments 06/15 10:51

DTN Midday Grain Comments 06/15 10:51 Corn Futures Higher at Midday; Soybeans, Wheat Mixed Corn futures are 4 to 7 cents higher at midday Wednesday; soybean futures are 5 cents lower to 5 cents higher; wheat futures are 5 cents lower to 5 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is higher with the S&P up 30 points. The U.S. Dollar Index is 5 points lower. Interest rate products are firmer. Energies are mixed with crude down .90 and natural gas up .35. Livestock trade is mostly higher with cattle leading. Precious metals are firmer with gold up 8.00. Corn futures are 4 to 7 cents higher at midday Wednesday; soybean futures are 5 cents lower to 5 cents higher; wheat futures are 5 cents lower to 5 cents higher. CORN: Corn futures are 3 to 7 cents higher at midday with firmer spread action as we edge back toward the upper end of the recent range as trade waits to see how weather develops into summer and the effects of recent storms in the Western Corn Belt. Ethanol margins are likely to remain rangebound with the weekly report showing production rebounding by 21,000 barrels per day (bpd), with stocks down by 439,000 barrels with strong blender margins. 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 belt short term with warmer and drier weather for many expected into the end of June which will support crop development initially but can turn into a bigger issue quickly. On the July contract chart, we have support at the lower Bollinger Band at $7.28 with trade moving solidly above the $7.62 20-day moving average with $8.00 as the next resistance area. SOYBEANS: Soybean futures are 5 cents lower to 5 cents higher with spread action softening again, and action consolidating into the middle of the recent range with little fresh news. Mea1 is $5.50 to $6.50 higher and oil is flat to 20 points higher. South America is moving toward post-harvest footing at this point, with planting wrapping up, except for double crop with warmer weather to push crop development short term. Basis has held strength well at processors and exporters in recent days with the daily wire quiet to start the week, and the cancellation of 100,000 metric tons (mt) today. On the July soybean chart, we are back below the 20-day moving average at $17.08 as first support with the fresh high and the Upper Bollinger Band above the current action at $17.59 and $17.84, and the lower Bollinger band solidly below the market at $16.57. WHEAT: Wheat futures are 5 cents lower to 5 cents higher at midday with trade fading back to the lower end of the range as harvest spreads and little change to the political situation short term with more efforts to move Ukrainian grain via rail with Chicago action leading so far. Warmer Plains weather should continue to catch maturity up with harvest to expand quickly the second half of the week. Spring wheat will need warmer weather to catch up further after the slow 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 65-cent discount to Minneapolis in flat action, and 84-cent premium to Chicago in narrower 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.