DTN Midday Grain Comments 06/16 11:11

DTN Midday Grain Comments 06/16 11:11 Corn Higher at Midday; Soybeans, Wheat Lower Corn futures are is 1 to 2 cents higher, soybeans are 1 to 2 cents lower, and wheat futures are 1 to 9 cents lower. David Fiala,DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is firmer with the Dow 445 points higher. The dollar index is 50 points higher. Interest rate products are weaker. Energies are mixed with crude .45 higher. Livestock trade is mixed with cattle leading. Precious metals are higher with gold up $10.50. CORN: Corn futures are 1 to 2 cents higher at midday with support from the drop in condition ratings Monday afternoon with a few more days until relief comes for the drier areas of the Corn Belt but trade was unable to sustain gains. The forecast is warm and dry near term for most, with the weekend expected to bring rain to many before warming again for most. Ethanol margins have stabilized with driving demand still slowly improving as we are now close to pre-shutdown levels of driving. Basis should remain fairly flat. USDA's weekly Crop Progress report showed planting complete with 95% emerged vs. 92% on average, with conditions 4% lower to 71% good to excellent, and 5% poor to very poor. On the July contract support is the 20-day moving average at $3.25, and resistance the fresh high at $3.34 1/2 last week and touched Tuesday. SOYBEANS: Soybeans futures are 1 to 2 cents lower with trade still working to consolidate a higher range with the stronger dollar and nothing new on the export wire pressing trade. Meal is narrowly mixed, with oil 35 to 45 points higher. The real has slipped back below 20 on the dollar index but has stabilized in the higher range for now. Crush margins remain solid for the time being with May crush just below expectations at 169.43 million bushels (mb). USDA's weekly Crop Progress report showed planting 93% complete vs. 88% on average, 81% emerged vs 75% on average, and conditions unchanged at 72% good to excellent, and 5% poor to very poor. The July soybean chart resistance is the upper Bollinger band at $8.80 and at support is the 20-day moving average at $8.55. WHEAT: Wheat futures are 1 to 9 cents lower with harvest and dollar pressure weighing this morning with KC scoring new lows for the move. 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 remains in the recent range vs. the dollar with U.S. export competitiveness limited still. KC is at a 62-cent discount to Chicago on the July, while Minneapolis is back to a 14-cent premium. USDA's weekly Crop Progress report showed harvest 15% complete, same as average with 91% headed vs. 94% on average, and 50% good to excellent, and 19% poor to very poor, down 1%. Spring wheat was 95% emerged vs. 97% on average, with 81% good to excellent, and 2% poor to very poor, down 1%. The July KC chart support is the lower Bollinger band at $4.38 which we are testing, 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.