DTN Midday Grain Comments 06/11 11:03

DTN Midday Grain Comments 06/11 11:03 Grains Mixed at Midday Corn is 2 to 3 cents higher, soybeans are narrowly mixed, and wheat is 2 to 6 cents lower. David Fiala,DTN Contributing Analyst The U.S. stock market is off sharply with the Dow 1050 points lower. The dollar index is 17 points higher. Interest rate products are mostly higher. Energies are mixed with crude down $3.10. Livestock trade is weaker. Precious metals are mixed with gold up $30. CORN Corn trade is 2 to 3 cents higher with trade likely to chop sideways to report time at 11 a.m. Ethanol margins are narrowing a bit with the energy weakness. Basis has been flat for the most part with the daily wire quiet for exports. On the WASDE report, production and acres are expected to be left unchanged from last month, with old-crop carryout at 2.159 billion bushels on old crop, and 3.322 billion on new crop. Weekly export sales were in line with recent weeks at 660,700 metric tons. On the July contract support is the 20-day at $3.23, and resistance the fresh high at $3.34 1/2 scored Monday. Soybeans Soybean trade is narrowly mixed with trade bouncing back from early weakness in pre-report action. Meal is $0.50 to $1.50 higher and oil is 35 to 45 points lower. On the WASDE report, yield and production is expected to be left unchanged, with old crop carryout at 577 million bushels, and new crop at 441 million bushels. The ral has slipped back below 20 on the index. Crush margins remain solid for the time being. The export wire showed a big sale to China of 720,000 metric tons, the bulk for new crop. Weekly export sales were good at 1.003 million metric tons of old crop, and 1.212 million of new crop, with meal at 208,000 metric tons, and 9,500 of oil. The July soybean chart resistance is the upper Bollinger Band at $8.72, and at support the 20-day at $8.50. WHEAT Wheat is 2 to 6 cents lower with Chicago trade leading as the stronger dollar pressures the market overnight, with little other fresh news. The plains look to remain mostly dry near term with heat fading a bit this week, with little change in Europe and Russia, although Russia is drier short term but overall concerns remain limited. Kansas City is at a 52-cent discount to Chicago on the July with wider action so far today, while Minneapolis is back to a 13 cent premium. World export tenders continue to be dominated by Russian offers. The WASDE report is expected to show production at 1.852 billion bushels, with old crop carryout at 980 million bushels, and new crop at 904 million bushels. Weekly export sales were a bit soft at 270,900 metric tons. The July Kansas City chart support is the 20-day at $4.53 which we are testing overnight, with resistance the upper Bollinger Band at $4.72. 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 (c) Copyright 2020 DTN, LLC. All rights reserved.