DTN Midday Grain Comments 06/02 12:02

DTN Midday Grain Comments 06/02 12:02 Corn Futures Lower at Midday; Soybeans Higher; Wheat Mixed Corn futures are 1 to 4 cents lower at midday Friday; soybean futures are 9 to 16 cents higher; wheat futures are 8 cents lower to 8 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 4 cents lower at midday Friday; soybean futures are 9 to 16 cents higher; wheat futures are 8 cents lower to 8 cents higher. The U.S. stock market is sharply firmer with the S&P up 60 points. The U.S. Dollar Index is 30 points higher. Interest rate products are weaker. Energies are firmer with crude 1.60 higher and natural gas up .06. Livestock trade is mostly higher with hogs leading. Precious metals are mostly lower with gold off 15.00. CORN: Corn futures are 1 to 4 cents lower at midday with softer spread action. New crop continues to hold near the upper end of the range with little fresh news heading towards the weekend. Position-squaring due to weekend forecasts is likely to end the session. Ethanol margins should be steady with corn holding the range and unleaded extending recent gains. Weekly export sales remained soft at 186,700 metric tons (mt) old crop and 312,600 mt new. Basis continues to hold a softer tone with better movement possibilities as fieldwork wraps up with most rains expected to stay in the Western Corn Belt in the short term. The second crop in Brazil continues to head toward the home stretch with cheap enough offers to control export business but a drier finish for some areas. On the July chart we have support at the 20-day moving average at $5.83, which we tested Friday morning, with trade fading back from $6.00 again Thursday. SOYBEANS: Soybean futures are 9 to 16 cents higher with firmer spread action. Trade is working to consolidate the rebound further with oil leading the product complex. Meal is narrowly mixed and oil is 90 to 100 points higher. Basis will likely remain a little softer with more buyers rolling to the back months. Planting should be on the homestretch nationally with short-term temps to boost emergence with the center of the belt watched for dryness in the short term. Weekly export sales had product strength with 123,400 mt sold of old crop soybeans; 301,000 mt new; 405,400 old meal; 61,700 new; 1,700 old oil; 3,200 new. July chart support is the lower Bollinger Band at $12.67, which we bounced off Friday, with the 20-day moving average still well above the market at $13.56. WHEAT: Wheat futures are 8 cents lower to 8 cents higher with spring wheat leading at midday. Action is two-sided as trade works to consolidate the recent range into the weekend. Plains rains are expected to continue but the potential for improvement for this year's crop is limited; SRW and spring wheat areas should move along, development-wise. The dollar is just off the recent highs, with Matif wheat just a touch higher. Weekly export sales showed cancellations of 210,500 mt for old-crop as the marketing year closes, with 466,500 mt sales of new crop. On the KC July chart, the lower Bollinger band at $7.62 is support with $8.00 becoming the first level of resistance, which we are just below at midday, with the 20-day moving average above the market at $8.38. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.