DTN Midday Grain Comments 06/07 10:49

DTN Midday Grain Comments 06/07 10:49 Corn, Soybean, Wheat Futures All Lower at Midday Corn futures are 5 to 6 cents lower at midday Friday; soybean futures are 13 to 18 cents lower; wheat futures are 14 to 18 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 5 to 6 cents lower at midday Friday; soybean futures are 13 to 18 cents lower; wheat futures are 14 to 18 cents lower. The U.S. stock market is mixed at midday with the S&P 6 points higher. The U.S. Dollar Index is 80 higher. The interest rate products are weaker. Energies have crude .20 higher and natural gas .09 higher. Livestock trade is mixed with the cattle the upside leader. Precious metals are weaker with gold off 60.00. CORN: Corn futures are 5 to 6 cents lower at midday with trade easing back from Thursday's gains with broad, risk-off trade Friday. Ethanol margins should be a little more steady with unleaded bouncing back a bit while the corn rally fades. Some rains are expected to work through into Saturday but, overall, the crop should continue to develop early. South America should see little short-term change with dry weather for much of the double-crop areas. Basis action should continue to remain mostly sideways in the short term. On the July chart, the 20-day moving average at $4.56 is resistance with the Lower Bollinger Band as support at $4.37, which we bounced from Thursday. SOYBEANS: Soybean futures are 13 to 18 cents lower at midday as we give back Thursday's gains with broad product weakness weighing on trade. Meal is 6.50 to 7.50 lower 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. But we did see 104,000 metric tons (mt) of old crop sold to China on Friday morning. Planting should be set for a better finish as the forecast should open up more into mid-June with wheat harvest moving along to allow 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 $12.15 with support at the fresh low at $11.75. WHEAT: Wheat futures are 14 to 18 cents lower at midday with broad selling as well as long liquidation increases with harvest pressure from the U.S. and a lack of fresh bullish news worldwide. Greater harvest progress should be made with some Friday storms slowing things again while warming temps should push maturity going north. The dollar is sharply higher after the jobs report came in strong with MATIF milling wheat taking another leg down Friday. The short-term forecast shows little change for the Black Sea growing areas but it seems to be built into trade for now. On the KC July chart, resistance is the 20-day moving average at $6.93, which we faded through midweek, with the lower Bollinger Band at $6.55 as support, which we are just above at midday. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.