DTN Midday Grain Comments 06/11 10:57

DTN Midday Grain Comments 06/11 10:57 Wheat Futures Higher at Midday; Corn Flat-Higher; Soybeans Flat-Lower Corn futures are flat to a penny higher; soybean futures are flat to 6 cents lower; wheat futures are 7 to 20 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are flat to a penny higher; soybean futures are flat to 6 cents lower; wheat futures are 7 to 20 cents higher. The U.S. stock market is mixed at midday with the S&P 8 points lower. The U.S. Dollar Index is 26 points higher. The interest rate products are firmer. Energies have crude narrowly mixed and natural gas .15 higher. Livestock trade is mostly lower. Precious metals are mixed with gold up 3.00. CORN: Corn futures are flat to a penny higher at midday with trade working just below nearby resistance with firmer spread trade in pre-report positioning. On the WASDE report Wednesday, trade is looking for old-crop corn carryout at 2.005 billion bushels (bb), down just slightly from last month, and new crop at 2.085 bb, with slight declines in world numbers. Ethanol margins should remain stable in the short term with the unleaded recovery holding recent gains to boost blending. Warmer weather should move in this week for most with some moisture lingering to the north and west. Basis action should continue to remain mostly sideways to firmer with the spread strength. Weekly crop progress showed corn 95% planted, same as average, with 85% emerged versus 84% on average with 74% good to excellent, off 1% and 5% poor to very poor. On the July chart, the 20-day moving average at $4.54 is resistance with the Lower Bollinger Band as support at $4.37, which we bounced from last week. SOYBEANS: Soybean futures are flat to 6 cents lower at midday with mixed product action as trade continues rangebound while the front month spreads are firming still. Meal is 3.50 to 4.50 lower and oil is 10 to 20 points higher. On Wednesday's WASDE report, trade is looking for old-crop carryout at 348 million bushels (mb) and new crop at 450 mb, both up slightly from last month, with world numbers edging lower on Brazil and Argentina's poor finish. South America should continue to lead the export market, but we did see another sale of old-crop soybeans to China of 104,000 metric tons (mt) on the daily wire Tuesday. Planting should wrap up with the more open forecast this week with crop progress showing 87% planted versus 84% on average, 70% emerged versus 66% on average with 72% good to excellent, and 4% poor to very poor. Basis should remain steady in the short term with oil lagging on crush margins again. The July chart resistance is at the 20-day moving average at $12.12 with support at the fresh low at 11.74 1/4. WHEAT: Wheat futures are 7 to 20 cents higher with Chicago wheat leading as trade looks to score a reversal after the recent losses with positive spillover from euro values as well. On the report, trade is looking for all wheat production at 1.885 bb, up slightly from last month with carryout at 778 mb on new crop, up slightly from last month, while world stocks are expected to see a bigger drop on Black Sea area losses. Plains harvest should expand significantly to the end of the week. The U.S. dollar strength is limiting further upside, but the MATIF wheat futures rebounding sharply Tuesday is helping the short-covering so far. Weekly crop progress showed heading at 89% versus 86% on average, 12% harvested versus 6% on average, and conditions 2% lower at 47% good to excellent and 19% poor to very poor on winter, while spring wheat is 98% planted versus 96% on average, 87% emerged versus 83% on average, and 72% good to excellent and 3% poor to very poor, down 2%. Weekly export inspections were in line with recent weeks at 352,202 mt. On the KC July chart, resistance is the 20-day moving average at $6.89, with the lower Bollinger Band at $6.40. David Fiala can be reached at dfiala@futuresone.com Follow him on social platform X @davidfiala (c) Copyright 2024 DTN, LLC. All rights reserved.