DTN Midday Grain Comments 06/28 11:05

DTN Midday Grain Comments 06/28 11:05 Grains Mixed at Midday Trade is narrowly mixed ahead of the report By David Fiala DTN Contributing Analyst General Comments The U.S. stock market indices are firmer with the Dow 50 higher. The dollar index is 10 lower. Interest rate products are weaker. Energies are softer with crude 0.25 lower. Livestock trade is mixed led by hogs. Precious metals are mixed with gold 2.10 higher. CORN Corn trade is flat to 2 cents higher at midday with trade heading towards the report on the lower end of the range. The forecast looks to trend towards warmer and drier into July with many areas still seeing active showers with notable short term heat in some areas. Ethanol margins have seen corn and ethanol futures fade, while unleaded remains elevated. Corn basis remains on a firmer trend, especially for the eastern belt. Looking ahead to the report at 11, expectations are for 86.62 million acres of corn on a range of 82 million to 89.8 million vs, 92.79 million in March, with stocks at 5.35 billion on a range of 5.174 to 5.90 billion, with full prevented planting not expected to be incorporated until August. On the September nearby chart, support is the 20-day at $4.43, after we fell below the 10-day at $4.51. SOYBEANS Soybean trade is 2 to 4 cents higher with trade chopping along ahead of the report at the lower end of the range. Meal is $0.50 to 1.50 lower with oil 10 to 20 points higher as well. Crush margins remain solidly positive overall sideways action so far this week. World export demand remains slow, with the real remaining near the upper end of the range but still cheap vs. the dollar, but the USDA did announce 544,000 metric tons of old crop sold to China today. Late-soybean planting will go for a few more days. The report is expected to show soybean acres as 84.35 million on a range of 81 million to 86.5 million. Stocks are expected to be 1.861 billion bushels on a range of 1.7 billion to 1.962 billion. The September chart support is the 100-day at $9.03, which we are testing overnight with the 20-day at 9.01 below that with the 200-day above the market at 9.16. WHEAT Wheat trade is flat to 4 cents lower at midday at with harvest for winter wheat expected to expand more towards the weekend with the July contract going into delivery. The Kansas City/Chicago spread has stabilized on the September contract for now but remains historically wide. The warmer weather should get combines moving more in the short term with above 90 degrees expected for the Plains. The dollar is below 96 on the index with the slide arrested for now. Black Sea area weather remains mixed but overall good progress is being made. 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 with wheat firming relative to corn this week. On the report, wheat acres are expected to be 45.65 million acres on a range of 44.5 million to 46.10 million, and stocks at 1.10 billion with a range of 1.077 billion vs. 1.16 billion bushels. On the September Kansas City chart, support is the 10-day and 20-day at $4.75-4.76 with more support at the lower Bollinger Band at 4.56, and resistance the upper Bollinger Band at $4.95. 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.