DTN Midday Grain Comments 06/22 10:48

DTN Midday Grain Comments 06/22 10:48 Corn, Wheat Futures Flat to Higher at Midday; Soybeans Lower Corn futures are flat to 8 cents higher at midday Wednesday; soybean futures are 11 to 20 cents lower; wheat futures are flat to 23 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 8 cents higher at midday Wednesday; soybean futures are 11 to 20 cents lower; wheat futures are flat to 23 cents higher. The U.S. stock market is firmer with the S&P up 17 points. The U.S. Dollar Index is 45 points lower. Interest rate products are firmer. Energies are weaker with crude down 4.70 and natural gas down .02. Livestock trade is weaker. Precious metals are mixed with gold up 2.90. CORN: Corn futures are flat to 8 cents higher at midday Wednesday with two-sided trade as we look to weather and outside markets for influence after the pullback to start the week. Ethanol margins are likely to remain rangebound with strong blender margins remaining even as they have narrowed a bit in recent 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 looks to moderate around the recent heat for a bit with the first half of July forecast the biggest driver to come. USDA's weekly Crop Progress report showed planting complete, 95% emerged, same as average; condition was 70% good to excellent and 6% poor to very poor, off 2 points on the week. On the July contract chart, we have support at the lower Bollinger Band at $7.28 with trade working right above the $7.62 20-day moving average with $8.00 as the next resistance area. SOYBEANS: Soybean futures are 11 to 20 cents lower at midday with broad selling overall and firmer spread trade as we sink back to support levels and pressure from soy oil values continues. Mea1 is $1.00 to $2.00 higher and oil is 160 to 280 lower. South America is moving toward post-harvest footing at this point. Planting is wrapped up for full season in the U.S. and getting started on double crop. Weekly crop progress showed planting at 94% versus 93% on average, emerged at 83% versus 84% on average; condition was 68% good to excellent, down 2 points, and 6% poor to very poor. Basis is fading a bit at processors and exporters in recent days with the daily wire remaining quiet. On the July soybean chart we are solidly below the 20-day at $17.08 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 $16.58. WHEAT: Wheat futures are flat to 23 cents higher at midday with broad ranges as harvest pressure builds and we reach oversold conditions. Warmer Plains weather should continue to catch maturity up with harvest to push past the average pace at 25% complete versus 22% on average. Condition is ranked 30% good to excellent and 43% poor to very poor on remaining winter wheat acres. Spring wheat will need warmer weather to catch up further after the slow start with good to excellent rated at 59%, up 7 points, and poor to very poor at 6%, with 89% emerged versus 97% on average. 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 59-cent discount to Minneapolis in narrower action, and 61-cent premium to Chicago in soft action and near multi-week lows. The KC July chart is just above $10.50 lower Bollinger band, with the 20-day well above the market at $11.53 with the fresh low at $10.25 as further support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.