DTN Midday Grain Comments 06/20 11:12

DTN Midday Grain Comments 06/20 11:12 Grains Lower at Midday on Monday Trade is lower across the board at midday as the market reduces weather premium. By David Fiala DTN Contributing Analyst General Comments U.S. stock market indices are higher with the DOW futures up 220 points. Interest rate products are higher. The dollar index is 60 points lower. Energies are higher this morning with crude up $1.25. Livestock trade is lower to sharply lower. Precious metals are mixed with gold down $7.00. CORN Corn futures are 8 to 11 cents lower at midday with a cooler and and wetter forecast than Friday encouraging selling but some heat is still around. The forecast calls for good rains for much of the belt the next 7 days with well-above-normal temperatures only in the western edge of the belt, there is some model disagreement that will be watched closely by traders. Ethanol margins will likely stay under pressure for blenders and producers to start the week, although blender margins are better this morning with ethanol futures off 3 cents while unleaded is up 5. Crop progress is likely to show conditions down 1%-3%, with emergence near complete nationally. The weekly export inspections were good at 1.265 million metric tons. On the July chart support is at the $4.29 10-day which we are just below at midday with the 20-day at $4.20 below that, with resistance at the contract high, $4.39 1/4. SOYBEANS Soybean futures are 8 to 14 cents lower at midday with trade 10-12 cents off the overnight lows with the wetter forecast encouraging selling. Meal is $3.50 to $4.50 lower, with oil 10 to 20 points lower. If weather continues to improve, the markets will likely focus on acres switched to soybeans from corn. Further export demand will be watched as well, as continued old crop sales will support the market as it would show continued struggles out of South America. The weekly export inspections improved at 314,990 metric tons. The weekly crop progress report is expected to decline slightly with planting near complete. On the July soybean chart support is the 20-day moving average at $11.28, with resistance now the 10-day at $11.60. WHEAT Wheat futures are 2 to 6 cents lower at midday with softer row-crop trade and harvest pressure weighing on the market while the weaker dollar is supporting trade. The winter wheat harvest will move along fast 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, along with some quality concerns in France. The weekly progress report should show harvest pace back to average pace, with conditions steady to 3% better on spring wheat. On the July KC chart the 20-day and lowest major moving average is resistance at $4.63 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.