DTN Midday Grain Comments 06/05 11:00

DTN Midday Grain Comments 06/05 11:00 Corn Futures Flat to Lower at Midday; Soybeans Higher; Wheat Lower Corn futures are flat to 2 cents lower at midday Wednesday; soybean futures are 10 to 12 cents higher; wheat futures are 5 to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to 2 cents lower at midday Wednesday; soybean futures are 10 to 12 cents higher; wheat futures are 5 to 9 cents lower. The U.S. stock market is firmer at midday with the S&P 40 points higher. The U.S. Dollar Index is 30 points higher. The interest rate products are firmer. Energies have crude .20 lower and natural gas .15 points higher. Livestock trade is mixed with hogs the downside leader. Precious metals are firmer with gold up 24.00. CORN: Corn futures are flat to 2 cents lower in quiet action at midday as we continue to grind along the lower end of the range with fresh news in short supply and spillover from wheat helping to limit upside as well. The weekly ethanol report showed production rising by 4,000 barrels per day (bpd) to the top of the year range while stocks fell by 155,000 barrels with exports helping offset soft driving demand. Rain chances will continue with thinner coverage into next week with temps warming up into midmonth to boost early growth. South America should continue to work more bushels into export channels as we get deeper into summer, but production cuts will limit potential. Basis action should continue to remain mostly sideways in the short term. Weekly export sales are expected to be in the 550,000 metric ton (mt) to 750,000 mt range. On the July chart, the 20-day moving average at $4.57 is resistance with the Lower Bollinger Band as support at $4.39, which is where we tested from overnight. SOYBEANS: Soybean futures are 10 to 12 cents higher at midday with trade finding some short covering as we ease oversold conditions with meal finding buying again as oil struggles. Meal is 8.50 to 9.50 higher and oil is 35 to 45 points lower. South America should continue to lead the export market with U.S. new-crop booking remaining very light for this time of year. Weekly export sales are expected to be in the 200,000 mt to 400,000 mt range with some better product strength. Planting should be set for a better finish as the forecast should open up more into mid-June with wheat harvest to set the stage for double-crop planting. Basis should remain steady in the short term with little change to crush margins. The July chart resistance is at the 20-day moving average at $12.18 with support at the recent low at $11.76. WHEAT: Wheat futures are 5 to 9 cents lower with long liquidation continuing as euro values ease and harvest moves forward on the Plains with more expansion on deck. Some moisture is expected to linger over the Southern Plains, which could cause isolated quality issues and delays into midmonth. The dollar is firming off the lower end of the recent range with MATIF milling wheat falling through support levels as well. The short-term forecast shows little change for the Black Sea growing areas which should continue to limit further downside. On the KC July chart support is the 20-day moving average at $6.91, which we are just below at midday, with the fresh high at $7.46 as resistance. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.