DTN Midday Grain Comments 06/09 12:01

DTN Midday Grain Comments 06/09 12:01 Grains Mostly Lower at Midday Trade is mixed at midday with new crop soybeans holding up the best. 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 35 points lower. Energies are higher with crude down .55. Livestock trade is mixed. Precious metals are mixed with gold up $9. CORN Corn trade is 3 to 5 cents lower at midday with trade setting back with a slightly wetter forecast for the south and west early next week, along with negative outside markets with weaker crude and the stronger dollar. The ethanol margins are stable this morning with corn and energies lower, while the blender margins remain under pressure. 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 with Brazilian corn production estimates sliding towards 76.3 million metric tons from the CONAB report this morning. The weekly export sales were 1.56 million metrc tons of old crop, plus 120,400 of new crop. The USDA also announced 116,500 metric tons of corn sold to unknown. On the July chart the 10-day at $4.18 is support followed by the $4.07 20-day, resistance is at the $4.39 new high for the move printed Wednesday. SOYBEAN Soybean trade is flat to 4 cents lower at midday with two sided trade since Brazilian production estimates came out at 95.7 million metric tons from CONAB this morning. Meal is $3 to $4 lower, and oil is 20 to 30 points higher. The July November spread is back to 24 cents, matching the lows of the week 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. The weekly export sales were good with 785,500 metric tons of old crop, 475,500 of new, 136,700 of old meal, 14,500 of new meal, 14,500 of old oil, and 7,600 of new. The USDA also announced 240,000 metric tons of new crop soybeans sold to China. On the July soybean chart support is at $11.25, the 10-day moving average then the 20-day at $10.98, resistance is hard to note at this point with the high of $11.89 from yesterday. WHEAT Wheat trade is 3 to 9 cents lower at midday with the weaker row crop trade and stronger dollar this morning. Fundamentals continue to be burdensome due to large domestic and global supplies with harvest making good progress in Kansas and Oklahoma this week. 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 weekly export sales were soft at 23,800 metric tons of old crop wheat, and 223,800 of new crop wheat. 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, which we have faded below overnight. 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.