DTN Midday Grain Comments 06/07 11:20

DTN Midday Grain Comments 06/07 11:20 Wheat Leading Grains Higher at Midday Trade is narrowly mixed at midday after corn and wheat reached new highs for the move. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 70 points. The interest rate products are lower. The dollar index is narrowly mixed. Energies are higher with crude up 0.50. Livestock trade is higher. Precious metals are lower with gold down $3. CORN Corn trade is flat to 2 cents lower at midday with trade holding the higher trend printing a new high for the move, and a higher low thus far. Crp conditions and weather are negatives for the market but market bulls note hotter weather is going to show up. The weekly condition report increased good to excellent ratings by 3% to 75%, with only 4% poor to very poor. Planting was 99% complete, 1% ahead of last year, and 2% ahead of average, with 90% emerged, 1% ahead of last year, and 4% ahead of average. Ethanol margins are under a little pressure with the corn rally outpacing the energy rally, and unleaded values softening a bit with ethanol values 12 cents above unleaded crimping blender margins. Basis has turned softer with better farmer movement on the rally. On the July chart the 10-day at $4.13 is support followed by the $4.02 20-day, resistance is at the $4.28 new high for the move printed overnight. SOYBEANS Soybean trade is 1 to 8 cents lower at midday with bull spreaders taking profits or getting out a losses if they entered spread the past week. Meal is $6 to $7 lower and oil is 50 to 60 points lower. The July contract moved from a 31 inverse over new crop November on the first of June to 75 over on Friday and is now back to 24 cents. So the spread movement has been nearly as active as the flat price. The midday July Noveber spread around 24 cents is at its 20-day moving average. South American prices continue to support the bull argument with values remaining at the high end of the range, but market bears argue we are over bought and more than pricing-in the news. The USDA announces 180,000 metric tons of new crop soybeans sold to China. Weather looks to allow first crop planting to wrap up this week, with weekly crop progress placing initial conditions are 72% good to excellent, and 4% poor to very poor, with planting 83% complete, 6% ahead of last year and the 5 year average, with 65% emerged, 5% ahead of last year, and 7% ahead of average. On the July soybean chart support is at $11.04, the 10-day moving average then the 20-day at $10.88, resistance is hard to note at this point with the high of $11.63 from Friday. WHEAT Wheat trade is 2 to 5 cents higher with trade edging higher despite row crops fading during the day session. Fundamentals continue to be burdensome due to large domestic and global supplies with Northern Hemisphere production looking strong as harvest gets going. The weekly condition report had winter wheat at 62% good to excellent, and 9% poor to very poor, down 1% from last week. The crop was 91% headed, 8% ahead of average, and harvest was 2% complete, 8% behind average. Spring wheat conditions were unchanged at 79% good to excellent, and 2% poor to very poor, with 96% emerged, 18% above average. The July Kansas City contract is back above the 50-day moving average at $4.66 making it support. Chart resistance is the 100-day at $4.77, which we closed above, but will have to hold today with trade successeding so far. 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.