DTN Midday Grain Comments 06/12 10:47

DTN Midday Grain Comments 06/12 10:47 Grains Mixed at Midday Corn and soybean futures are narrowly mixed; wheat futures are 1 to 4 cents higher. David Fiala,DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow 200 points higher. The dollar index is 46 points higher. Interest rate products are mostly weaker. Energies are weaker with crude down $.70. Livestock trade is mostly higher. Precious metals are mostly lower with gold flat. CORN: Corn futures are narrowly mixed at midday with trade working to hold the upper end of the range with little fresh news after the USDA report came in near expectations and early gains faded. The forecast is warm and dry near term for most, with a wetter second week. Ethanol margins have stabilized after the energy pullback Thursday, with driving demand still remaining on the recent plateau. Basis has been flat for the most part with the daily wire quiet for exports. On the WASDE report yield and production were left unchanged with old-crop carryout at 2.103 billion bushels (bb), and new at 3.323 bb, both very near expectations and little changed from last month. On the July contract support is the 20-day moving average at $3.24, and resistance the fresh high at $3.34 1/2 scored Monday. SOYBEANS: Soybean futures are narrowly mixed in quiet action as we remain just below resistance as we look for the next catalyst to move the market with another couple cargos of new crop booked. Meal is flat to $1.00 lower, and oil is 5 to 15 points lower. On the WASDE report, yield and production were left unchanged, with old-crop carryout at 585 million bushels (mb), slightly higher, while new crop was at 395 mb, about 50 mb below expectations. The real has slipped back below 20 on the index but is stable Friday morning. Crush margins remain solid for the time being. The July soybean chart resistance is the upper Bollinger band at $8.75 and support at the 20-day moving average at $8.52. WHEAT: Wheat futures are 1 to 5 cents higher with KC trade leading on light short-covering after the break Thursday. The Plains look to remain mostly dry near term with heat returning to push harvest, with little change in Europe and Russia, although Russia is drier short term, but overall concerns remain limited. The ruble has held against the dollar rally Friday. KC is at a 49-cent discount to Chicago on the July with narrower action so far Friday, while Minneapolis is back to a 15-cent premium. World export tenders continue to be dominated by Russian offers. The WASDE report showed production at 1.877 bb, 25 mb above expectations, with old-crop carryout at 983 mb, and new crop at 925 mb, both slightly higher than expected. The July KC chart support is the lower Bollinger band at $4.34, and resistance is the 20-day moving average at $4.55. 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.