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DTN Midday Grain Comments 06/13 10:52
Soybean, Wheat Futures Higher at Midday; Corn Flat-Higher
Corn futures are flat to 3 cents higher at midday Friday; soybean futures
are 19 to 22 cents higher; wheat futures are 9 to 13 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are flat to 3 cents higher at midday Friday; soybean futures
are 19 to 22 cents higher; wheat futures are 9 to 13 cents higher. The U.S.
stock market is weaker with the S&P 30 points lower. The U.S. Dollar Index is
20 points higher. The interest rate products are weaker. Energy trade is
sharply higher with crude 4.40 higher and natural gas .08 higher. Livestock
trade is weaker with cattle the downside leader. Precious metals are mixed with
gold up 43.00.
CORN:
Corn futures are flat to 3 cents higher with firmer spread action as trade
remains rangebound despite the broader strength in soybeans and wheat. On the
WASDE report, we saw old-crop carryout at 1.365 billion bushels (bb) versus
1.415 bb last month; new-crop at 1.750 bb versus 1.80 bb last month; yield
unchanged; world stocks slightly lower. Ethanol margins are getting a boost
from unleaded gains and longer-term biofuels optimism. Warmer weather is
expected for most through midweek with good short-term rain coverage through
the beginning of next week. Basis continues to hold the recent range. On the
July chart, the 20-day moving average at $4.45 1/2 is resistance with the lower
Bollinger Band at $4.27 as support.
SOYBEANS:
Soybean futures are 19 to 22 cents higher with oil locked limit higher as
higher-than-expected biodiesel targets accelerated the early gains post-Israeli
airstrikes on Iran which initially boosted oil. Meal is 1.50 to 2.50 lower and
oil is locked at 300 points higher. Biodiesel targets held at 3.35 billion
gallons this year but go to 5.65 billion next year, and 5.86 billion the
following year. On the WASDE report, old-crop carryout stayed at 350 million
bushels (mb), the same as last month; new-crop carryout 295 mb; yield
unchanged; world stocks edged slightly higher. Planting should be pretty well
wrapped up with the warm stretch through midweek except for double-crop with
growth catching up. Basis has softened at some major processors with the early
roll to November bids. On the July chart, resistance is the 20-day moving
average at $10.52, which we are sharply above at midday, with the lower
Bollinger Band at $10.34.
WHEAT:
Wheat futures are 9 to 13 cents higher with Chicago action leading with
broad short-covering on the escalating world events and warmer Black Sea
forecasts with the early dollar strength fading again. The WASDE report showed
production unchanged at 1.921 bb with carryout unchanged on old-crop at 841 mb;
new-crop down 25 mb to 898 mb; world stocks a little bit lower. The hard red
wheat areas should start to see harvest move ahead as warmer temps aid maturity
and readiness. Spring wheat should continue to catch up as we warm back up with
good rain potential in the short term. MATIF wheat is solidly higher with the
weaker euro. On the KC July chart, resistance is the 20-day moving average at
$5.33, which we are just above at midday, with the Lower Bollinger Band at
$5.17 the next round down.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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