DTN Midday Grain Comments 06/05 11:04

DTN Midday Grain Comments 06/05 11:04 All Lower at Midday Trade is off lows at midday with potentially more open weather and trade progress battle. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 145 higher. The dollar index is 8 higher. Interest rate products are mixed. Energies are sharply lower with crude 2.00 lower. Livestock trade is mostly firmer led by cattle. Precious metals are mixed with gold 4.20 higher. CORN Corn trade is 3 to 4 cents lower at midday with trade fading on talk of imports to the Southeast and a more open weather forecast for some areas into mid-June. Multiple sources have raised hopes that tariffs won't be imposed on Mexico. The heaviest rains in the next seven days have shifted southeast, but progress will remain slow for most. The weekly ethanol report showed production down 13,000 barrels per day, and stocks down 71,000 with ethanol futures down to 1.50. Basis is moving more sideways as we build a range. There have been reports on Smithfield booking corn into the Carolinas, along with Mexico purchasing Brazilian-origin corn. On the July nearby chart support is the $4.16 10-day moving average with the recent high at $4.38, and then the upper Bollinger Band at $4.46 SOYBEANS Soybean trade is flat to 2 cents lower with trade starting to carve out a short term range in the $8.70 to $8.95 area on the July contract. Meal is flat to $1.00 higher and oil is 10 to 20 points lower. Crush margins remain solidly positive overall with meal retaking the lead during the day session. South American currencies have firmed as they control the world export business for now with slight losses today. Field work should generally remain slow today but more progress is likely early in the week. The corn/soybean ratio has been more stable here as more crop insurance days pass. The July chart support is the 50-day at 8.69, and resistance the 100-day at 9.00. WHEAT Wheat trade is 3 to 12 cents lower at midday with the correction continuing after the selling yesterday and somewhat improved weather for U.S. wheat growing areas and concerns still moderate in the Black Sea area. The Kansas City/Chicago spread narrowed to 26 cents before swinging back to 43 cents overnight into this morning. The dollar has dropped with talk of interest rate cuts again before rebounding slightly today. 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. On the July Kansas City chart support is the 20-day at 4.33, with trade fading just below the 10-day and 100-day at $4.57 at midday. 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.