DTN Midday Grain Comments 06/17 11:19

DTN Midday Grain Comments 06/17 11:19 Grains Higher at Midday Friday Trade is higher across the board at midday with soybeans leading, adding weather premium. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are lower with the Dow futures down 110 points. The interest rate products are mostly higher. The dollar index is 20 points lower. Energies are higher this morning with crude up $1.20. Livestock trade is mixed. Precious metals are mixed with gold down $8.00. CORN Corn trade is 7 to 10 cents higher at midday with trade following the lead of soybeans, outside markets and concern about weather forecasts. The forecasts continue to flucatute with temps and moisture changing direction and location. Ethanol margins remain under pressure with production outpacing usage, and ethanol futures solidly above unleaded futures, discourging blending. However, the morning action has narrowed this a bit with unleaded gaining vs. ethanol. On the July chart, support is at the $4.28 10-day, which we are back above at midday with the 20-day at $4.18 below that, with resistance at the contract high, $4.39 1/4. SOYBEANS Soybean trade is 20 to 25 cents higher at midday with the drier forecast and supportive outside markets helping to find buying enthusiasm. Meal is $9 to $10 higher with oil 35 to 45 higher. Weather concerns remain, which should limit downside, but the market is focused on a big correction if weather forecasts take out any stressful weather and if the June 30 Planting Intentions report should add planted soybean acres. USDA announced 129,000 metric tons of soybeans sold to China and 395,000 to unknown, split between crop years. On the July soybean chart, support is the 20-day moving average at $11.24, with resistance now the 10-day at $11.58. WHEAT Wheat trade is 2 to 5 cents higher across the three contracts at midday with support from the weaker dollar and row crops with harvest pressure likely to weigh on trade going into the weekend. The winter wheat harvest will continue to accelerate this week with warm weather and limited moisture for most of the belt. Feed wheat will continue to get more competitive on the world market, which is needed with the big fundamental supply overhang. Russian barley harvest has been disappointing so far, with some concerns about quality coming forward. The rally in corn is obviously getting wheat more economically in line to start increasing feed usage 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.