DTN Midday Grain Comments 06/23 11:02

DTN Midday Grain Comments 06/23 11:02 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 26 to 31 cents lower at midday Friday; soybean futures are 5 to 33 cents lower; wheat futures are 6 to 12 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 26 to 31 cents lower at midday Friday; soybean futures are 5 to 33 cents lower; wheat futures are 6 to 12 cents lower. The U.S. stock market is weaker with the S&P 30 lower. The U.S. Dollar Index is 60 points higher. Interest rate products are mostly higher. Energies are weaker with crude .65 lower and natural gas off .04. Livestock trade is firmer. Precious metals are mixed with gold up 7.00. CORN: Corn futures are 26 to 31 cents lower at midday with trade continuing to ease overbought conditions. We are watching forecasts evolve in the short term with some relief expected this weekend and into later next week, along with negative outside market action. Ethanol margins should remain rangebound. Weekly export sales were poor at 36,000 metric tons (mt) old crop and 47,100 new. Basis will likely fade further with demand remaining soft and users having better coverage toward harvest. The second crop in Brazil continues to head toward the homestretch with little fresh short-term weather news. Traders will be watching for better rain systems the second week of the forecast as well as some weekend coverage, but stress will hold for many areas. On the December chart we have resistance at the Upper Bollinger Band at $6.23, which we are fading back from, with the 20-day moving average at $5.55, well below the market. SOYBEANS: Soybean futures are 5 to 33 cents lower with July holding up the best as spread action weakens. We are pulling some weather premium out of the market and working to rebalance the product complex. Meal is 13.00 to 15.00 lower and oil is 100 to 120 higher with some two-sided action so far. Weekly export sales were better at 457,500 mt of old crop and 168,800 of new; meal sales totaled 135,300 mt for old and 11,100 mt new; oil sales were 200 mt. 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 $13.75 with the 20-day moving average at $12.31, well below the market. WHEAT: Wheat futures are 6 to 12 cents lower, following the row crops down. Harvest progress is likely to pick up for winter wheat with better rains in the north starting to develop with trade able to firm a bit off the early lows again. KC wheat should get closer to average pace by next week on harvest. The dollar is worked back from the lower end of the range, with Matif wheat giving back some gains with some Black Sea weather concern ticking up a little this week. Weekly export sales were soft at 109,700 mt old crop and 14,200 mt new. On the KC July Chart, the 20-day moving average at $8.16 has become support with the Upper Bollinger Band at $8.69 as resistance. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2023 DTN, LLC. All rights reserved.