DTN Midday Grain Comments 06/28 10:50

DTN Midday Grain Comments 06/28 10:50 Corn, Soybeans Higher at Midday Trade is higher at midday led by soybeans. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are higher with the Dow futures up 140 points. The interest rate products are higher. The dollar index is 33 points lower. Energies are higher with crude up $0.60. Livestock trade is mixed. Precious metals are mixed with gold down $8.20. CORN Corn trade is 5 to 6 cents higher at midday with trade following the lead of soybeans, with outside markets helping to back trade off the 13 cents higher move seen overnight. The forecast remains cool over the next week with limited rain for the center of the belt with heat potentially returning the second week. Ethanol margins are fairly steady this morning with blender margins still under pressure from firmer ethanol futures. The weekly progress and conditions report left good to excellent unchanged at 75%, and poor to very poor 1% higher at 5%, with silking at 6% vs. 3% last year and 5% on average. Conditions did decline in some of the key production states like Illinois. On the December chart support is at the $3.90 3/4 100-day then the $3.82 1/2 low printed Friday. Resistance is the 200-day moving at $3.96, which we have edged above this morning, with the 50-day at $4.06 above that. SOYBEANS Soybean trade is 14 to 17 cents higher at midday with strong demand, especially from China helping to underpin trade. Meal is $6 to $7 higher, and oil is flat to 10 points higher. The market is expecting an acreage increase on the June 30th Planting Intentions report which should help to keep trade defensive ahead of the report to some degree, although strong demand will help lead the front months. Weather looks to bring rain to double crop areas while other areas look to struggle again this week, with heat returning in the extended forecast. The weekly conditions and progress report had good to excellent 72% down 1%, and poor to very poor unchanged at 5%, with blooming at 9% vs. 7% last year and on average. On the November soybean chart support is at the 50-day at $10.63, resistance is at the 20-day at 11.20, which we are above overnight. WHEAT Wheat trade is narrowly mixed at midday with harvest pressure helping to pull trade back from the overnight highs. Rains should have slowed harvest in areas of Kansas, but overall progress remains pretty good as they cross the halfway point with some yields pushing triple digits even on dryland in North Central Kansas. Growing concerns about crop conditions are picking up in the Red River Valley with conditions declining sharply the last two weeks. The weekly crop progress report had winter wheat at 62% good to excellent, 8% poor to very poor, up 1 percentage point with harvest at 45%, 4% above average, while spring wheat was 4% lower at 72% good to excellent and 5% poor to very poor with 56% headed vs. 27% on average. On the July KC chart the 10-day and lowest major moving average is resistance at $4.36 with support at the $4.11 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.