DTN Midday Grain Comments 06/22 10:53

DTN Midday Grain Comments 06/22 10:53 Corn, Soybean Futures Lower at Midday; Wheat Flat-Higher Corn futures are 12 to 13 cents lower at midday Thursday; soybean futures are 47 to 52 cents lower; wheat futures are flat to 3 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 12 to 13 cents lower at midday Thursday; soybean futures are 47 to 52 cents lower; wheat futures are flat to 3 cents higher. The U.S. stock market is mixed with the S&P 2 lower. The U.S. Dollar Index is 30 points higher. Interest rate products are weaker. Energies are weaker with crude 2.70 lower and natural gas off .03. Livestock trade is mixed. Precious metals are weaker with gold off 17.00. CORN: Corn futures are 12 to 13 cents lower at midday with trade pulling back from the fresh highs and easing overbought conditions. We are waiting forr further weather and demand developments with a little wetter trend in the extended forecast for now. Ethanol margins should remain rangebound with the weekly report showing production up by 34,000 barrels per day (bpd), and stocks were 578,000 barrels higher.USDA's weekly export sales report is delayed until Friday. Basis will likely fade further as we pump weather premium into the market. 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. On the December chart we have support at the Upper Bollinger Band at $6.12, which we are testing, and resistance at $6.29 1/4, the fresh high scored Wednesday. SOYBEANS: Soybean futures are 47 to 52 cents lower at midday with trade seeing pressure as overbought conditions ease. Oil is leading products lower with a continued focus on the extended forecast with more time for the soybeans to catch up. Meal is 12.50 to 13.50 lower and oil is 120 to 160 points lower after being limit lower Wednesday. Basis has turned a bit more steady with the rally, which should continue in the short term. November chart resistance is the Upper Bollinger Band at $13.66 with the 20-day moving average at $12.26, well below the market. WHEAT: Wheat futures are flat to 3 cents higher with two-sided action as we have shaken off outside market negativity and harvest pressure to hold the upper end of the range so far. Rains look to fade for the Southern Plains to allow better harvest progress soon, while spring wheat should see some relief in the short term. The dollar has worked back to the lower end of the range, with Matif wheat slightly higher Thursday with some Black Sea weather concern moving back in. On the KC July Chart, the 20-day moving average at $8.14 has become support with the Upper Bollinger Band at $8.63 as resistance, which we are above at midday. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.