DTN Midday Grain Comments 06/23 13:06

DTN Midday Grain Comments 06/23 13:06 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are down 15 on July to 35 lower on December at midday Thursday; soybean futures are 60 cents lower; wheat futures are 15 to 30 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are down 15 on July to 35 lower on December at midday Thursday; soybean futures are 60 cents lower; wheat futures are 15 to 30 cents lower. The U.S. stock market is lower with the DOW down 125 points. The U.S. Dollar Index is 25 points higher. Interest rate products are firmer. Energies are weaker with crude down 1.40. Livestock trade has hogs and live cattle weaker but feeders are firmer on the weak corn. Precious metals are mixed with gold up 6.90. CORN: Corn futures are 15 to 35 cents lower with nearby July trade continuing to firm versus September and December. The broad selling was picking up steam overnight into early trade and we found support before 11 a.m. CDT. A combination of forecast moderation with more rain, economic concerns and we dropped below chart support; all contributed to the weakness. USDA's Weekly Export Sales and Shipments report is delayed due to Monday's Federal Juneteenth holiday. Ethanol margins are likely to remain rangebound with strong blender margins remaining in place even as they have narrowed a bit in recent days with the weekly report expected to show steady production and stocks. Basis remains solid through most of the Corn Belt, although there could be panic selling; it is still early. We have a lot of growing season to go. On the July contract chart, we have support at the 100-day at $7.36 with resistance at the $7.61 20-day. SOYBEANS: Soybean futures are 60 cents lower at midday with long liquidation accelerating as crush margins decline on broad product weakness. We are still near the daily lows with July futures not too far from $2 off the high seen just over a week ago. Mea1 is $12 lower, and oil is 360 points lower. A wetter forecast and technical selling have the complex lower. A lot of margin calls on traders in long positions occurred Thursday and may be an even larger deal Friday. Biodiesel margins are very good at the moment. 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 with wheat harvest moving quickly. Basis is fading a bit at processors and exporters in recent days with the daily export wire remaining quiet, but the board weakness should limit selling the rest of the week. On the July soybean chart support is at $15.78 -- the May 9 low -- then the 200-day is all the way down at $14.79. Resistance is now at the 100-day at $16.48, then the 10-day at $16.95. WHEAT: Wheat futures are 15 to 30 cents lower with spillover pressure from beans and corn. The KC contract is the downside leader as harvest pressure picks up as Northern Hemisphere harvest hits full stride. Plains weather should allow for rapid harvest with isolated showers while spring wheat should continue to make progress in catching up a bit development-wise. The dollar continues to hold in the upper end of the range with the strong ruble helping competitiveness as well. Intra-contract spreads have relaxed in recent days as well. The KC July chart has support at $9.93, a late March low, then the 200-day down at $9.29. Resistance is at the 100-day at $10.81. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.