DTN Midday Grain Comments 06/02 11:11

DTN Midday Grain Comments 06/02 11:11 Grains Trending Higher at Midday Double-digit soybean gains at midday with beans and corn again seeing new highs for the move. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 30 points. The interest rate products are higher. The dollar index is 2 points higher. Energies are mixed. Livestock trade is mostly. Precious metals are mixed. CORN Corn trade has been narrowly mixed with support from soybeans having us 1 to 3 cents higher at midday. Another new high for the move has been seen so chart buying and short covering could keep us supported into the weekend, not just this afternoon. The weekly EIA numbers had ethanol production up 1.5%, stocks down.2% with gasoline demand up around 1%. This has ethanol futures up 2 cents on the July contract at midday which is supporting corn. Weather is not a concern at this time, so fundamental support continues to be noted from firm South American values, but that could change soon plus book of new crop US supplies will be occurring over the next few months. On the July chart the 10-day at $4.04 is support followed by the $3.95 20-day, resistance is at the $4.17 3/4 fresh high then the $4.21 Bollinger band. SOYBEANS Soybean trade is staying firm with nearby July up nearly 30 cents at midday with upside momentum in plan, November beans are "only" up 13 cents and printed a new high for the move up at $10.84 1/2. Meal is up $13 on July and bean oil up 28 points. Outside markets are pretty neutral so this is chart momentum and limited selling interest along with nearby demand supporting the futures. Bear spreading interest is around in corn and beans due to big supplies, but the liquidation of spreads is also helping the bull argument at this juncture. On the July soybean chart support is at $10.82, the 10-day moving average then the 20-day at $10.71, resistance is hard to note at this point with futures moving to $11.30 this morning. The money game of short covering and profit taking by longs could give us some dynamic action this afternoon and tomorrow; $11.50 then $12 would be psychological levels of resistance. WHEAT Wheat trade is higher at midday with spillover support from beans. The winter wheat contracts are up nearly a dime and Minneapolis is up around a nickel at midday. Historically prices are low with limited selling interest at contract lows, so a bounce in light of the higher soybean action is no surprise this morning. Fundamentals continue though to be burdensome due to large domestic and global supplies with Northern Hemisphere production as a whole going well. The dry prairies of Canada received some rain but the forecast trends warmer and drier again in the extended forecast which could have the Minneapolis contract the dark horse bull market potential for wheat this month. The July Kansas City contract is back above the 10-day and 20-day moving averages, which are now support both at $4.53. Chart resistance is the 50-day at $4.67 then the 100-day at $4.77. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered trading adviser. David Fiala can be reached at dfiala@futuresone.com Follow David Fiala on Twitter @davidfiala (BAS) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.