DTN Midday Grain Comments 06/16 11:06

DTN Midday Grain Comments 06/16 11:04 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 9 to 14 cents higher at midday Thursday; soybean futures are 9 to 13 cents higher; wheat futures are 12 to 31 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the S&P off 115 points. The U.S. Dollar Index is 5 points lower. Interest rate products are firmer. Energies are firmer with crude up .20 and natural gas up .20. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold up 25.00. CORN: Corn futures are 12 to 16 cents higher at midday with trade seeing softer spread action continue, consolidating further and waiting for further weather updates with a bias towards heat for now. Weekly export sales of corn were soft at 140,900 metric tons (mt) old crop, and new crop at 138,900 mt. Ethanol margins are likely to remain rangebound 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. U.S. weather continues to keep moisture in much of the Corn Belt short term with warmer and drier weather expected for many into the end of June. This 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 $7.64 20-day moving average with $8.00 as the next resistance area. SOYBEANS: Soybean futures are 9 to 13 cents higher with trade working to regain momentum as we watch weather developments and to see if further cargos are switched to Brazil origin after seeing cancellations Wednesday. Mea1 is $8.00 to $9.00 higher, and oil is 125 to 135 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 crop development short term. Basis has held strength well at processors and exporters in recent days. There was a cancellation of 100,000 mt reported Wednesday on the daily wire. Weekly export sales remained soft at 317,200 mt old crop and 407,600 mt new crop reported Thursday morning. Meal export sales were at 256,300 old and 35,600 new; 6,200 of oil. On the July soybean chart, we are back below the 20-day at $17.10 as first resistance new with the fresh high and the Upper Bollinger Band above the current action at $17.57 and $17.84, and the lower Bollinger band solidly below the market at $16.63. WHEAT: Wheat futures are 12 to 31 cents higher with two-sided trade early turning to broad buying on weather concerns in Europe as U.S. harvest pushes forward and we see little change on the political front. 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. Weekly export sales were rangebound at 236,900 mt. KC wheat is back to a 71-cent discount to Minneapolis in weaker action and an 81-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 $11.84. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.