DTN Midday Grain Comments 06/17 10:47

DTN Midday Grain Comments 06/17 10:47 Corn Futures Higher at Midday; Soybeans Steady-Lower; Wheat Lower Corn futures are 1 to 3 cents higher at midday Friday; soybean futures are flat to 5 cents lower; wheat futures are 23 to 31 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 3 cents higher at midday Friday; soybean futures are flat to 5 cents lower; wheat futures are 23 to 31 cents lower. The U.S. stock market is slightly firmer with the S&P up 10 points. The U.S. Dollar Index is 125 points higher. Interest rate products are firmer. Energies are down sharply with crude down 7.00 and natural gas down .22. Livestock trade is mostly higher. Precious metals are weaker with gold down 6.50. CORN: Corn futures are 1 to 3 cents higher at midday with trade seeing weaker spread action as we move back toward the very upper end of the range with forecasts to be watched into the long weekend and early momentum fading on negative spillover from outside markets. The daily export wire showed some signs of life Friday with 105,664 metric tons (mt) of old crop corn sold to unknown and 144.907 of new crop to Costa Rica. The ethanol margins are likely to remain rangebound with strong blender margins, but they have narrowed a bit the last few days. 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 for many expected into the end of June, helping to support action. On the July contract chart, we have support at the lower Bollinger Band at $7.28 with trade moving solidly above the $7.65 20-day moving average with $8.00 as the next resistance area. SOYBEANS: Soybean futures are flat to 5 cents lower with trade continuing to hold the middle part of the range with soft spread action and fresh news still limited. Mea1 is $5.50 to $6.50 higher and oil is 215 to 235 points lower. South America is moving toward post-harvest footing at this point, with planting wrapped up for full season, and getting started on double crop. Basis has held strength well at processors and exporters in recent days with the daily export wire remaining quiet. On the July soybean chart we remain just below the 20-day moving average at $17.14 as first resistance 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 23 to 31 cents lower at midday with early two-sided trade giving way to harvest pressure and broad spillover weakness from the outside markets along with little change on the political front. Warmer Plains weather should continue to catch maturity up with harvest to expand quickly into the weekend. 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 62-cent discount to Minneapolis in flat action, and 76-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 moving average well above the market at $11.77. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.