DTN Midday Grain Comments 06/23 11:23
Wheat Higher at Midday
Corn and beans are at our spring-summer lows at midday while spring wheat is
seeing double-digit gains.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher with the Dow up 10 points. The
interest rate products are mixed. The dollar index is 40 points lower. Energies
are firmer with crude up 0.40. Livestock trade is mixed. Precious metals are
higher with gold up $8.10.
Corn trade is 1 to 2 cents lower at midday after some mixed overnight
action. Trade is slow at midday with momentum flat to lower. Trade should turn
more active this afternoon with a balance of long liquidation due to new lows
for the move, but shorts may also want to take profits ahead of a summer
weekend. Temperatures will be cooler over the weekend. The weather forecast
continues to evolve with bigger rains expected for much of the belt in the
extended forecast returning to normal temps next week. Ethanol margins are not
benefiting from the lower corn trade with ethanol futures slipping around 10
cents a gallon on the week. Crude oil and unleaded are slightly higher at
midday but they have had a negative month; crude fell around $10 a barrel from
the late May high to the low printed on Wednesday. July corn futures have
support at the new low at $3.60, put-in this morning, with resistance the
200-day at $3.71.
Soybean trade is fractionally to 4 cents lower at midday with selling
returning during the day session after some overnight strength. Meal is flat to
$1 lower and oil is 5 to 15 points higher. The possibility of added acres and
demand concerns are weighing on the market. The USDA June Planting Intentions
and June Quarterly Stocks reports will be out one week from now. South America
should continue to push bushels into the world export market at very
competitive prices. Spread trade has favored old crop today, showing some
demand green shoots. July beans have major support at the $9.00 14-month low
made this morning, with the 20-day at $9.25 first resistance, and the 10-day at
$9.26 above that.
Wheat trade is 2 to 3 cents higher on winter wheat contracts and 15 cents
higher on Minneapolis trade at midday. Minneapolis is leading the strength with
weather remaining challenging for the northern plains and European weather
concerns. Winter wheat harvest expansion is limiting upside for winter wheat.
Protein levels have been disappointing in Kansas with mixed yields so far.
Europe and the Black Sea area continues to see warm and dry temperatures for
the immediate future with some relief potentially offered into early July for
western Europe. The dollar has slid back to the lower end of the range which
should help export competitiveness. On the July Kansas City contract support is
the 10-day at $4.64 with the 200-day at $4.51 below that with resistance the
recent high at $4.81.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Advisor.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
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