DTN Midday Grain Comments 06/10 10:54

DTN Midday Grain Comments 06/10 10:54 Corn, Beans Higher at Midday Row crops are firmer ahead of the report, with wheat struggling. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 80 points. The interest rate products are lower. The dollar index is 30 points higher. Energies are higher with crude down 0.90. Livestock trade is mixed. Precious metals are mixed with gold up 3.00. CORN Corn trade is 1 to 3 cents higher at midday with firmer trade ahead of the report release at 11. The ethanol margins have seen some pressure on blender margins this week with unleaded values softening. Basis has turned softer with better farmer movement on the rally with ample supplies still available in the countryside. On the WASDE report expectations are for old crop carryout at 1.766 billion bushels, new crop at 2.058 billion, Brazilian production at 79 million metric tons, and world stocks at 206 million metric tons on old crop, and 204.6 on new. On the July chart the 10-day at $4.20 is support followed by the $4.09 20-day, resistance is at the $4.39 new high for the move printed Wednesday. Expect some active trade around the report, then go into the weekend with a tone based upon the extended forecasts. SOYBEANS Soybean trade is 5 to 10 cents higher ahead of the report with trade making new highs this morning before setting back. Meal is flat to $1 higher on meal and oil is 10 to 20 points higher. The July November spread is trading at 22-24 the narrowest level of the week. Trade has gotten fairly heavily overbought, which could leave trade vulnerable to a correction if selling surfaces. The WASDE report is expected to show old-crop carryout at 381 million bushels of old crop, 300 million of new crop, Brazilian production at 98.2 million metric tons, with world stocks at 72.9 million for old crop, and 66.1 for new. The USDA announced 60,000 metric tons of old-crop soybean sale, and 203,000 of new-crop sales to unknown. On the July soybean chart support is at $11.35, the 10-day moving average then the 20-day at $11.03, resistance is hard to note at this point with the high of $11.94 from this morning. WHEAT Wheat trade is 2 to 7 cents lower across the three contracts at midday ahead of the report. The WASDE report is expected to reinforce negative fundamentals this morning with total production estimated at 2.027 billion bushels, 985-million-bushel old-crop carryout, 1.053 billion of new crop carryout, old-crop world stocks of 242.6 million metric tons, and new crop of 257 million metric tons. Better rains look to hit the spring wheat areas in the near term, with winter wheat harvest rapidly expanding. 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 set back from on Thursday. 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.