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DTN Midday Grain Comments 06/01 11:03
Corn, Wheat Lower, Soybeans Higher at Midday
Corn futures are 1 to 2 cents lower at midday Monday, soybean futures are 2
to 3 cents higher, and wheat futures are 1 to 8 cents lower.
David Fiala,DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is flat with the Dow 30 points higher. The U.S. Dollar
Index is 40 points lower. Interest rate products are weaker. Energies are
weaker with crude down $1.00. Livestock trade is mixed with cattle leading.
Precious metals are firmer with gold up 2.00.
CORN:
Corn futures are 1 to 2 cents lower at midday with trade rebounding off the
selling seen late in the overnight session on China trade concerns. Ethanol
margins remain stable with unleaded demand holding the recent plateau with some
improvement in demand seen this weekend. Warmer drier weather for most is
expected for the bulk of the week. Basis has shown isolated signs of strength
this week. Weekly export inspections were good at 1.21 million metric tons
(mmt), with weekly crop progress likely to show steady conditions with planting
nearly complete and emergence just ahead of average. On the July contract
support is the 20-day moving average at $3.19, and resistance the fresh high at
$3.31.
SOYBEANS:
Soybean futures are 1 to 2 cents higher with trade using the weaker dollar
to offset the trade issues so far this morning. Meal is flat to $1.00 higher
and oil is 15 to 25 points higher. South America continues to move along
harvest-wise with strong shipments out of Brazil likely to continue unless port
issues redevelop due to strikes or virus-related absenteeism. Crush margins
remain solid for the time being. Weekly export inspections remain soft at
396,387 metric tons (mt), with weekly crop progress expected to show planting
and emergence ahead of average. The July soybean chart support is the lower
Bollinger band at $8.29, and resistance the 20-day moving average at $8.42,
which we are testing at midday.
WHEAT:
Wheat futures are 2 to 8 cents lower with trade selling off Monday morning
with better near-term Euro and Russia forecasts along with the new marketing
year for winter wheat starting. The Plains look to trend warmer and drier with
harvest underway in the far south. KC is at a 56-cent discount to Chicago on
the July with wider action so far, while Minneapolis is back to a 3-cent
premium. Weekly export inspections remained rangebound at 499,353 mt. Weekly
crop progress is expected to show maturity just below normal with steady
conditions for winter wheat, while spring wheat planting and emergence remain
below average. The July KC chart support is the lower Bollinger band at $4.32,
which we tested last week before bouncing, with resistance at the 20-day moving
average at 4.64, which we are just below at midday.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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