DTN Midday Grain Comments 06/04 11:08

DTN Midday Grain Comments 06/04 11:08 Grains Mixed at Midday Early gains have faded with wheat the downside leader after the weekly progress report. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 435 higher. The dollar index is 15 higher. Interest rate products are firmer. Energies are flat with crude 0.15 higher. Livestock trade is firmer led by cattle. Precious metals are weaker with gold 2.70 lower. CORN Corn trade is mixed at midday with trade backing off the 10-12-cent trade higher early on after the lower-than-expected planting progress with demand concerns moving back to the forefront especially with non-competitive exports. Generally wet and cool weather will continue to challenge producers in the near term with some areas likely to make some more short-term progress. The ethanol margins are struggling with the pull-back in the energy complex with ethanol futures hanging around $1.52, well off the recent lows. Basis has seen selling pressure from farmer movement and the higher board but has been moving more sideways in recent days with weather hindering movement as well. The weekly crop progress showed 67% planted vs. 96% on average, at the bottom end of expectations, with 46% emerged vs. 84% on average, which remains record slow. On the July nearby chart, support is the $4.14 10-day moving average with the recent high at $4.38, and then the upper Bollinger Band at $4.44 SOYBEANS Soybean trade is 3 to 4 cents higher with trade starting to carve out a short-term range. Meal is $1.00 to $2.00 higher, and oil 15 to 25 points higher. Crush margins remain solidly positive overall with meal continuing to lead. South American currencies remain cheap at the end of harvest but are back off the recent lows, with the export wire quiet for the U.S. Field work should generally remain slow today but more progress is likely early in the week. The higher price of corn is pulling soybean prices higher along with fears of high prevent plant acreage and more guidance expected this week on prevent plant adjustments. The price is pushing for acres to shift to corn or milo when possible but late plantings may still force beans as the better alternative. Weekly planting progress was 39% planted vs. 79% planted, with 19% emerged vs. 56% on average. The July chart support is the 50-day at $8.70, and resistance the 100-day at $9.01. WHEAT Wheat trade is 3 to 15 cents lower overnight with Kansas City trade the downside leader despite weather concerns and a sharp decline in conditions in Oklahoma with the net conditions improved. The Kansas City/Chicago spread narrowed to 26 cents before swinging back to 37 cents overnight into this morning. The dollar has dropped with the trade concerns as well but has found footing this morning. Hard red wheat is working into feed rations in some areas with the bounce in corn values, and reduced quality may increase feeding on that front. The weekly crop progress report showed good to excellent at 64%, up 3% on the week, and 9% poor to very poor, with 76% headed vs. 84% on average. Spring wheat was 93% planted vs. 96% on average, and 69% vs. 84% on average, with 83% good to excellent, and 1% poor to very poor. On the July Kansas City chart, support is the 10-day at 4.56, and the 100-day at 4.58, with the next round up the $4.95, the recent high, and the then 200-day at $5.02. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BAS) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.