DTN Midday Grain Comments 06/07 11:08

DTN Midday Grain Comments 06/07 11:08 Corn, Wheat Futures Lower at Midday; Soybeans Mixed Corn futures are 5 to 11 cents lower at midday Wednesday; futures are 13 to 28 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 11 cents lower at midday Wednesday; futures are 13 to 28 cents lower. The U.S. stock market is mixed with the S&P unchanged. The U.S. Dollar Index is 10 points lower. Interest rate products are weaker. Energies are firmer with crude 1.00 higher and natural gas up .03. Livestock trade is mixed. Precious metals are mixed with gold off 10.00. CORN: Corn futures are 5 to 11 cents lower with spread action remaining firmer. Early gains turned to selling Wednesday as the weekend rains draw closer, and we see position-squaring heading towards the report Friday. Ethanol showed gains of 32,000 barrels per day (bpd) on production, and a stocks build of 616,000 barrels. On Friday's USDA report, trade is looking for old-crop carryout of 1.449 billion bushels (bb) up slightly from last month, with new crop at 2.254 bb, also up slightly. Basis continues to hold a softer tone with better movement possibilities as fieldwork wraps up. Most rains are expected to stay in the Western Corn Belt until the front passes this weekend, allowing post-emergence spraying to make good progress. The second crop in Brazil continues to head toward the home stretch with some recent rains, and a cold front that could hurt some of the last-planted corn in the coming days. On the July chart we have support at the 20-day moving average of $5.87 with trade pressing back toward the recent high at $6.14. SOYBEANS: Soybean futures are 3 cents lower to 7 cents higher with firmer spread trade. Early gains are turning to two-sided action as trade hangs around nearby resistance levels with mixed product action. Meal is $4.50 to $6.00 higher and oil is 10 to 20 points lower. On USDA's report Friday, trade will be looking for 223 million bushels (mb) of old-crop carryout, and 345 mb of new, up slightly from last month. Basis will likely remain a little softer with most buyers rolling to the back months. Planting should be on the homestretch nationally with the east remaining drier in the short term before broader rains should boost emergence. July chart support is the 20-day moving average at $13.46, which we are just above overnight, with the Upper Bollinger Band well above the market at $14.10. WHEAT: Wheat futures are 13 to 28 cents lower with Chicago leading action as selling took off. Spreads continue to unwind after being able to extend Tuesday on the dam explosion in Ukraine, along with early harvest progress in the Southern Plains. On the report Friday, trade is looking for old-crop carryout at 606 mb, up slightly, and new crop at 569 mb, also up slightly. Warmer weather may stress spring wheat in the short term, but otherwise we are caught up after the slow start. Plains harvest should pick up around rains this week as well, keeping us near an average pace there. There are some concerns with the longer-term weather pattern for Australia as well. The U.S. dollar is just off the recent highs, with Matif wheat slightly lower. On the KC July chart, the $8.00 area failed to hold Wednesday morning, with the lower Bollinger band at $7.67 as support. ** Join us for DTN's webinar at 12:30 p.m. CDT Friday as we go through the numbers, discuss what they mean for prices and hear DTN Lead Analyst Todd Hultman's take on which estimates are reasonable and which are not. We also welcome and make time for questions. Register here for Friday's June WASDE and Crop Production reports webinar: https://www.dtn.com/wasde-webinars David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.