DTN Midday Grain Comments 06/07 10:59

DTN Midday Grain Comments 06/07 10:59 Grains Mixed at Midday Ag trade is broadly lower at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 260 higher. The dollar index is 50 lower. Interest rate products are weaker. Energies are firmer with crude 0.90 higher. Livestock trade is weaker, reversing early gains. Precious metals are mixed with gold 4.50 higher. CORN Corn trade is 2 to 4 cents lower with choppy trade continuing with trade continuing to carve out a range from $4.25 to $4.54. The situation with Mexico remains up in the air with talks expected to be ongoing. The heaviest rains in the next seven days have shifted southeast, with mixed progress in the meantime and warmer short term temps boosting growth. Ethanol margins are improved slightly for producer and blender this morning but remain tight. Basis has been flat to firmer in recent days as movement slows. On the July nearby chart support is the $3.99 1/2 20-day moving average with trade just below the 10-day at 4.21. SOYBEANS Soybean trade is 10 to 13 cents lower with trade fading on expected planting progress into the weekend. Meal is $4.00 to $5.00 lower and oil is 30 to 40 points lower. Crush margins remain solidly positive overall. South American currencies have firmed as they control the world export business for now with slight gains this morning, although still on the lower side of the range. The USDA did announce 110,000 metric tons of beans sold to Egypt split between old and new crop. Field work should generally remain slow today but more progress is likely into the weekend. The corn/soybean ratio has been more stable here as more crop insurance days pass. The July chart support is the 20-day at $8.47, with the trade testing the 50-day at $8.69 before fading again. WHEAT Wheat trade is 7 cents lower to 3 cents higher with Minneapolis leading overnight with Kansas City and Chicago drifting lower. The Kansas City/Chicago spread narrowed to 26 cents before swinging back to 58 cents this week, with wider action during the midday. The heavy rains should be more limited for the Plains in the near term. The dollar has dropped again with the down trend continuing. 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 4.39, with trade just below the 100-day at $4.56. 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.