DTN Midday Grain Comments 06/22 11:25
Wheat Mixed at Midday
Corn and beans are testing the summer lows at midday.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher with the Dow up 40 points. The
interest rate products are mostly higher. The dollar index is 3 points higher.
Energies are firmer with crude up 0.60. Livestock trade is lower. Precious
metals are mostly higher with gold up $6.00.
Corn trade is 5 cents lower at midday with trade testing the lower end of
the summer range. No weather concerns and no positive demand story
fundamentally have buyers only scale down buying. The weekly export sales were
mediocre at 528,800 metric tons of old crop, and 124,000 of new. The weather
forecast continues to evolve with bigger rains expected for much of the belt in
the extended forecast with some below normal temperatures expected over the
next week. Ethanol futures are down 2 cents so production margins are not
benefiting from the nickel lower midday corn trade. On the July corn contract
support is at the spring low at $3.60 1/2 with resistance the 200-day at $3.71.
Soybean trade is 5 to 6 cents lower at midday with follow-through selling
pressure but momentum has slowed with trade near the low end of the
spring/summer range. Meal is $1 lower and bean oil is narrowly mixed. South
America should continue to push bushels into the world export market at very
competitive prices. The slide in soy oil hurt crush margins yesterday with the
biodiesel uncertainty still lingering with the EPA punting on rulings again
until next week at the earliest. The weekly export sales were soft at 111,200
metric tons of old crop, 3,800 of new, 86,600 metric tons of old crop meal,
45,600 of new crop meal, 13,300 of old crop oil, and 3,100 of new oil. July
beans have major support at the $9.09 1/2 14-month low, with the 20-day at
$9.28 first resistance, and the 10-day at $9.34 above that.
Wheat trade is mixed at midday with harvest pressure and the weaker ruble
weighing on winter wheat trade as export competitiveness takes a shot despite
the general down trend of the dollar with Minneapolis action edging higher.
Winter wheat harvest continues to expand in Kansas with mixed results
continuing with good yields and poor protein in Central Kansas and lighter
yields and better protein west. Europe and the Black Sea area continues to see
warm and dry temperatures for the immediate future with some relief potentially
offered into July. The weekly export sales were ho-hum at 542,900 metric tons
and Egypt secured Black Sea origin cargos. On the July Kansas City contract,
support is the 10-day at $4.62 which we are testing midday 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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