DTN Midday Grain Comments 06/21 10:54

DTN Midday Grain Comments 06/21 10:54 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 20 to 23 cents higher at midday Wednesday; soybean futures are 25 to 35 cents higher; wheat futures are 21 to 33 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 20 to 23 cents higher at midday Wednesday; soybean futures are 25 to 35 cents higher; wheat futures are 21 to 33 cents higher. The U.S. stock market is mixed with the S&P 20 lower. The U.S. Dollar Index is 17 points lower. Interest rate products are weaker. Energies are firmer with crude 1.05 higher and natural gas up .05. Livestock trade is weaker. Precious metals are weaker with gold off 6.50. CORN: Corn futures are 20 to 23 cents higher at midday with trade finding good buying again as action is just off our highs. Crop conditions declined last week, and near-term weather relief remains limited for the more stressed areas. Ethanol margins will need to see better driving demand to offset corn strength with the weekly report delayed until Thursday. Weekly export inspections were softer at 877,310 metric tons (mt) on the delayed report Tuesday. Basis will likely flatten a little with the recent spread action and overall weather concerns, but the trend will likely remain down. The second crop in Brazil continues to head toward the homestretch with little fresh short-term weather news. Trade will be watching for better rain systems the second week of the forecast, but stress will hold in the short term. Weekly crop progress showed emergence at 96% versus 94% on average, with 55% rated good to excellent, off 6 points, and 12% poor to very poor. On the December chart we have support at the Upper Bollinger Band at $6.00 and resistance at $6.26 1/4, the fresh high scored Wednesday morning. SOYBEANS: Soybean futures are 25 to 35 cents higher at midday with trade building further weather premium in. July is leading and there is spillover support from corn, while meal leads the product complex as oil fades after the biofuels targets disappointed traders. Meal is $28.00 to $29.00 higher and oil is locked limit down, off 400 points. Weekly export inspections remained soft seasonally at 185,184 mt. Basis has turned a bit more steady with the rally, which should continue in the short term. Weekly crop progress showed 92% emerged versus 81% on average, with 54% rated good to excellent, off 5 points, and 12% poor to very poor. November chart support is the Upper Bollinger Band at $13.43 with $13.76, the fresh high, becoming resistance. WHEAT: Wheat futures are 21 to 33 cents higher at midday following the lead of row crops. Harvest pressure is offset for the winter wheats for now, while spring wheat should see better rains in the short term to help offset condition declines. Rains look to impact parts of the Plains to limit harvest progress and to boost spring wheat progress after the recent stress. The weekly crop progress report showed harvest at 15% complete versus 20% on average, with 94% headed versus 93% on average, and 38% good to excellent, and 29% poor to very poor, unchanged on the week, with spring wheat 10% headed versus 10% on average, and 51% good to excellent, down 9% with 12% poor to very poor. The dollar is working off the lower end of the range, with Matif wheat sharply higher so far Wednesday. Weekly export inspections were soft at 237,820 mt. On the KC July Chart, the 20-day moving average $8.10 has become support with the Upper Bollinger Band at $8.50 becoming further support as we work above it. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.