DTN Midday Grain Comments 06/16 11:23

DTN Midday Grain Comments 06/16 11:23 Grains Lower at Midday Thursday Trade is lower across the board at midday with soybeans leading with prices down 20 cents. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are lower with the DOW futures down 55 points. Interest rate products are higher. The dollar index is 60 points higher. Energies are lower with crude down $1.50. Livestock trade has cattle sharply lower and hogs slightly lower. Precious metals are higher with gold up $25. CORN Corn futures are 1 to 3 cents lower at midday; trade overnight up to midday has been mixed with the forecasts continuing to fluctuate with near-term heat remaining. Outside markets are negative with crude lower and the dollar stronger. The rest of the week we should see direction from forecast to forecast with the weather market in full bloom this year due to the recent heat and market run-up. The weekly export sales were within the range of expectations but not friendly coming in at 909,700 metric tons of old crop, and 178,700 mt of new crop. Ethanol margins remain under pressure with production outpacing usage and the lower corn and petroleum trade. On the July chart we slipped below the $4.28 10-day average last night which picked up some sell stops that likely was long profit-taking. This is now chart resistance with support at the 20-day at $4.18. SOYBEANS Soybean futures are 15 to 20 cents lower due to negative outside markets and perceived weather forecast improvements, albeit slight. Also, spread traders are unwinding some bull spreads and long bean spreads versus corn. Meal is off $7 to $8 and bean oil is down 80 points. Soybean trade was nearly 30 lower before rebounding a bit at mid-morning. Weather concerns remain, which should limit downside, but a big correction is always possible if weather forecasts take out any stressful weather. Expectations that the June 30 Planting Intentions report should add planted soybean acres are also limiting the upside. The weekly export sales were solid at 816,400 metric tons of old crop, 768,800 mt of new crop, 84,400 of old crop meal, 108,500 of new crop meal, and 15,700 of oil. But the market acted like that was old news. On the July soybean chart support is the 20-day moving average at $11.21, with resistance now the 10-day at $11.57. WHEAT Wheat futures are mixed with Chicago and KC 3 cents lower and Minneapolis 3 cents higher. Wheat trade has been pretty quiet. The weekly export sales were better than expected at 762,900 metric tons, which limited downside. The dollar reversal back up as it appears today will limit upside. The winter wheat harvest will continue to accelerate this week with warm weather and limited moisture especially in hard red winter wheat country. Feed wheat will continue to get more competitive on the world market, which is needed with the big fundamental supply overhang. The rally in corn is obviously getting wheat more economically in line to start increasing feed usage. Other Northern Hemisphere growing areas remain in good shape as well. On the July KC chart the 20-day and lowest major moving average is resistance at $4.62 1/2 with support at the $4.41 1/4 contract low. 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.