DTN Midday Grain Comments 06/21 10:54

DTN Midday Grain Comments 06/21 10:54 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 20 to 26 cents lower at midday Tuesday; soybean futures are 12 to 16 cents lower; wheat futures are 26 to 45 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 20 to 26 cents lower at midday Tuesday; soybean futures are 12 to 16 cents lower; wheat futures are 26 to 45 cents lower. The U.S. stock market is firmer with the S&P up 90 points. The U.S. Dollar Index is 45 points higher. Interest rate products are weaker. Energies are mixed with crude up 1.65 and natural gas down .17. Livestock trade is mixed. Precious metals are firmer with gold up .60. CORN: Corn futures are 20 to 26 cents lower to open the week as immediate weather concerns fade and concerns about demand coming forward continue to linger, even as outside markets stabilize a bit. The export wire will need to show further signs of life after starting to pick up again late week, but nothing reported today. Ethanol margins are likely to remain rangebound with strong blender margins along with improvement indicated by the action to start the week. 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 looks to moderate from recent heat for a bit. Weekly export inspections continue to edge lower at 1.184 million metric tons (mmt), with crop progress expected to show slightly lower conditions with emergence caught up to average. On the July contract chart, we have support at the lower Bollinger Band at $7.28 with trade working right at the $7.64 20-day moving average with $8.00 as the next resistance area. SOYBEANS: Soybean futures are 12 to 16 cents lower at midday with continued product weakness helping drag trade lower with meal becoming the downside leader along with immediate weather concerns easing. Mea1 is $4.00 to $5.00 lower, and oil is 25 to 35 lower. South America is moving toward post-harvest footing at this point. Planting is wrapping up for full season in the U.S. and getting started on double-crop. Weekly crop progress is likely to show conditions slightly lower and emergence back to average. Weekly export inspections continue to trend lower seasonally at 427,344 metric tons (mt). 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 are solidly below the 20-day moving average at $17.10 as first resistance 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 $16.62. WHEAT: Wheat futures are 26 to 45 cents lower at midday with broader selling developing during the day session. Harvest pressure is picking up as progress rapidly expands with the warm-up; combines are starting to roll north of I-70. Warmer Plains weather should continue to catch maturity up with harvest to push above average pace this week with yields mixed as conditions remain steady. Spring wheat will need warmer weather to catch up further after the slow start with slight improvement to conditions expected with maturity still well behind normal. Weekly export inspections remained range bound at 331,328 mo. 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 70-cent discount to Minneapolis in wider action, and 55-cent premium to Chicago in narrower action and making multiweek lows. The KC July chart is below $10.70 lower Bollinger band, with the 20-day well above the market at $11.67. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.