DTN Midday Grain Comments 06/12 10:55

DTN Midday Grain Comments 06/12 10:55 Soybean, Wheat Futures Mixed at Midday; Corn Higher Corn futures are 15 to 17 cents higher at midday Monday; soybean futures are 5 cents lower to 6 cents higher; wheat futures are 1 cent lower to 6 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 15 to 17 cents higher at midday Monday; soybean futures are 5 cents lower to 6 cents higher; wheat futures are 1 cent lower to 6 cents higher. The U.S. stock market is firmer with the S&P up 10. The U.S. Dollar Index is 9 points higher. Interest rate products are mixed. Energies are weaker with crude 2.30 lower and natural gas off .02. Livestock trade is mostly higher. Precious metals are weaker with gold off 5.50. CORN: Corn futures are 15 to 17 cents higher at midday with solid buying to start the week. Spread action is mixed as weekend rains disappointed in some of the dry areas with still mixed forecasts. Ethanol margins are narrowing a bit with the corn strength as unleaded struggles to hold gains. On the report Friday, we saw yield unchanged at 181.5 bushels per acre (bpa) with old-crop carryout up 35 million bushels (mb) at 1.452 billion bushels (bb), and up 35 mb on new at 2.257 bb on reduced exports. World production and stocks were basically unchanged as Brazil product rose and Argentina was reduced by 2.0 million metric tons (mmt) each. Weekly export inspections were in line with recent weeks at 1.169 mmt. Basis continues to hold a softer tone with most users bidding off December at this point. The second crop in Brazil continues to head toward the home stretch with the cold front not getting to frost temps. Weekly crop progress should show steady-to-lower conditions with emergence solidly ahead of the five-year average. On the July chart we have support at the 20-day moving average at $5.90, with the Upper Bollinger Band at $6.27, just above the market. SOYBEANS: Soybean futures are 5 cents lower to 6 cents higher with November working to consolidate back over the $12.00 area. There is a focus on short-term weather as we try to play catchup with the slow start for soybeans this year. Meal is flat to $1.00 higher, and oil is flat to 10 points higher. Weekly export inspections were off a bit at 140,179 metric tons (mt). On the report, yield was unchanged at 52.0 bpa with carryout up by 15 mb on old crop at 230 mb, and new crop up 15 mb at 350 mb. World stocks were little changed with Brazil production raised 1.0 mmt, and Argentina reduced by 2.0 mmt. Basis will likely remain a little softer with most buyers rolling to the back months. Planting should be on the homestretch nationally with the weekly report expected to show planting and emergence still ahead of average, with conditions steady to lower as we look to see how the forecast develops this week. July chart support is the 20-day moving average at $13.43, which we closed solidly above, with the Upper Bollinger Band above the market at $13.98. WHEAT: Wheat futures are 1 cent lower to 6 cents higher with Chicago leading action on bigger volume to start the week. Winter wheat harvest should expand this week and spillover support is noted from the row crops. On the report Friday, all wheat production was raised by 6 mb to 1.665 bb, with old-crop carryout unchanged at 598 mb, new crop up 6 mb at 562 mb, while world stocks were raised by 6.0 mmt on better world production. Spring wheat should get a little break from heat in the short term, while Plains harvest will potentially be slowed by rains in the west later this week. The dollar is just off the recent highs, with Matif wheat continuing to edge a bit higher overnight. Weekly crop progress should show slightly better winter wheat conditions with heading and harvest near the five-year averages, with spring wheat conditions steady to slightly better as planting wraps up. Weekly export inspections were a bit soft at 246,559 mt. On the KC July Chart, the $8.00 area remains resistance, with the lower Bollinger band at $7.60 as support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.