DTN Midday Grain Comments 06/23 11:29

DTN Midday Grain Comments 06/23 11:29 Grain Trade Mixed at Midday Trade is mostly lower at midday with trade off early lows. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 180 points. The interest rate products are higher. The dollar index is 30 points lower. Energies are higher this morning with crude up $0.40. Livestock trade is mixed with cattle sharply higher. Precious metals are mixed with gold down $2.50. CORN Corn trade is 5 to 6 cents lower at midday; we are 3 to 4 cents off the early lows after testing the December 200-day moving average. Chart pressure as well as weather is behind the weakness this morning due to rains plus the uncertainty with the Brexit vote ongoing today. Outside markets are positive but significant volatility is expected until the result is confirmed. An exit would likely spike the dollar, and weigh on commodity values. Much of Northern Illinois and Indiana got good amounts of rain yesterday, although accompanied by damaging winds in some areas. The extended forecast looks like heat could remerge after cooler and wetter weather for the western belt early next week. We are now only in the middle of our 2016 trading range that has been from the $3.64 low following the bearish March Planting Intentions number to the $4.49 high Friday due to the stressful weather concern. The weekly export sales are were solid with 870,700 metric tons of old crop, and 550,300 of new crop, plus 138,000 on the daily wire to South Korea split between old and new crop. On the December chart the 50-day at $4.05 3/4 is now resistance and the 20-day up at $4.26 above that, support is down at the 200-day moving average at $3.96, with the 61.8% retracement level in that area as well. SOYBEANS Soybean trade is flat to 2 cents higher at midday with trade rebounding from 15 cent lower trade. Meal is $1 to $2 lower and oil is 10 to 20 points higher. The market is expecting an acreage increase on the June 30th Planting Intentions report which is expected to limit upside this week and next. Weather should still rule though along with our good soy demand for our big soybean supplies. The forecast looks favorable for some of the double crop planting in the near term, along with cooler weather and rains limiting stress in the western belt over the next week, with the eastern belt more open after the moisture the last few days. The weekly export sales were good at 660,700 metric tons of old crop, 661,500 of new crop with 162,500 of old crop meal, 24,000 of new crop, 14,000 of old crop oil, and 3,500 of new. On the November soybean chart support is the 20-day moving average at $11.11, with resistance at the 10-day at $11.39. The next major moving average to the downside is the 50-day at $10.55. WHEAT Wheat trade is flat to 3 cents lower at midday with pressure from harvest and corn trade at midday. Corn weakness along with harvest pressure has the bears in control this week, but Minneapolis futures are in a little better shape on the chart. The heavy rains forecasted for Kansas next week could slow harvest pace next week. The July Minneapolis has held above nearby support at the 100-day which is at $5.22. Spring wheat has been supported due to Canadian wheat concerns. No major improvement was seen on the weekly sales of 472,500 metric tons, but competitiveness is improved. On the July Kansas City chart the 10-day and lowest major moving average is resistance at $4.56 with support at the $4.27 fresh 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.