DTN Midday Grain Comments 06/03 12:09

DTN Midday Grain Comments 06/03 12:09 Wheat Leads Grains Higher at Midday Wheat is the leader at midday with soybeans turning mixed. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 70 points. The interest rate products are lower. The dollar index is 150 points lower. Energies are mostly lower with crude down 0.70. Livestock trade is mostly higher. Precious metals are higher with gold up $30. CORN Corn trade is flat to 2 cents higher at midday with trade seeing light two-sided trade during the day session. Weather looks to be condusive to crop development in the near term, with mixed forecasts beyond that. South American prices remain firm, with ethanol margins mostly sideways this morning. The weekly export sales were strong at 1.32 million metric tons of old crop, with 128,900 of new crop. On the July chart the 10-day at $4.07 is support followed by the $3.97 20-day, resistance is at the $4.18 1/4 fresh high overnight then the $4.21 Bollinger band. SOYBEANS Soybean trade momentum has slowed this morning with bull spreads unwinding at bit, July is down 7 to 10 cents after being 25 higher overnight, with November beans flat to 3 higher at midday. Meal is $3 to $4 lower and oil is 10 to 20 points higher. South American prices have shown some signs of softness. Weather looks to allow soybean planting to wrap up in the Western Belt by the beginning of next week with better conditions for development in the near term. The weekly export sales were strong at 309,400 of old crop, 736,700 of new, 68,600 of old crop meal, 246,900 of new, and 44,700 of oil. On the July soybean chart support is at $10.92, the 10-day moving average then the 20-day at $10.79, resistance is hard to note at this point with the high of $11.63 overnight. The money game of short covering and profit taking by longs could give us some dynamic action going into the weekend. WHEAT Wheat trade is 3 to 8 cents higher at midday with the sharply lower dollar after the jobs report adding support to trade. Historically prices are low with limited selling interest at contract lows, making light short covering in tandem with row crop strength a possibility going into the weekend. Fundamentals continue though to be burdensome due to large domestic and global supplies with Northern Hemisphere production as a whole going well, as harvest gets going on the Southern Plains. The dry prairies of Canada received some rain but the forecast trends warmer and drier again in the extended forecast but early condition reports for spring wheat are very good to start. Weekly export sales were OK at 107,400 of old-crop wheat, and 385,000 of new. The July Kansas City contract is back above the 10-day and 20-day moving averages, which now support both at $4.54. 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.