DTN Midday Grain Comments 06/08 11:30

DTN Midday Grain Comments 06/08 11:30 Wheat Leading Grains Higher at Midday Soybeans surge to new highs, carrying corn and wheat with them. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are higher with the DOW futures up 30 points. Interest rate products are lower. The dollar index is 30 points lower. Energies are higher with crude up .50. Livestock trade is mixed. Precious metals are higher with gold up $16. CORN Corn futures are 8 to 10 cents higher at midday with additional support spilling over from the soybean pit again, along with the hotter weather on the way. Outside markets are supportive with the dollar weaker and crude over $51.00 this morning. The weekly ethanol production report showed production 4.79% higher, and stocks 2.62% lower with gasoline demand 1.52% lower and blender margins being crimped. Basis has turned softer with better farmer movement on the rally. Trade should position for the WASDE report coming Friday, with most focused on South American and world numbers. On the July chart the 10-day at $4.16 is support followed by the $4.05 20-day, resistance is at the $4.39 new high for the move printed this morning. SOYBEANS Soybean futures are 38 to 42 cents higher at midday with trade again finding renewed buying strength with Brazilian soy prices continuing to rise. Meal is $13 to $14 higher and oil is 65 to 75 points higher. The July-November spread is around 28 cents, bouncing off the 20-day moving average of 24 cents this morning. Trade has gotten fairly heavily overbought which could leave trade vulnerable to a quick correction ahead of the WASDE report on Friday if buying slows down. USDA announced a 132,000 metric ton sale to China. On the July soybean chart support is at $11.14, the 10-day moving average then the 20-day at $10.92, resistance is hard to note at this point with the high of $11.83 from this morning. WHEAT Wheat futures are 7 to 13 cents higher at midday with support from row crops and the weaker dollar this morning. Fundamentals continue to be burdensome due to large domestic and global supplies with Northern Hemisphere production looking strong as harvest gets going with southern Kansas opening up to start the week with good early yields. Better rains look to hit the spring wheat areas in the near term, adding more resistance there, while Russian progress remains a little behind normal with good conditions. The July KC contract is above the 100-day moving average at $4.77 making it nearby support with the 200-day at $4.92 notable resistance. 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.