DTN Midday Grain Comments 06/03 11:00
Beans, Wheat Higher at Midday
Corn is flat to 1 cent lower, soybeans are 6 to 7 cents higher, and wheat is
2 to 6 cents higher.
David Fiala,DTN Contributing Analyst
The U.S. stock market is firmer with the Dow 450 points higher. The dollar
index is 37 points lower. Interest rate products are weaker. Energies are mixed
with crude up $0.20. Livestock trade is mixed with cattle leading. Precious
metals are mostly lower with gold down $33.
Corn trade is flat to 1 cent lower at midday with trade continuing to chop
along with little fresh news to push the corn market. The weekly ethanol report
showed further production recovery with up 41,000 barrels per day, and stocks
down another 700,000 barrels per day. Warmer drier weather for most is expected
for the bulk of the week before cooling next week. Basis has been mostly steady
to start the week. On the July contract support is the 20-day at $3.20, and
resistance the fresh high at $3.31.
Soybean trade is 5 to 7 cents higher at midday with continued currency
improvement, along with the idea of further export booking with another 186,000
metric tons of sales hitting the wire. Meal is 1.50 to 2.50 higher, and oil is
flat to 10 points lower. The real has gained against the dollar overnight as
well getting to the best levels in weeks. South America continues to move
soybeans on to the export market as harvest winds down. Crush margins remain
solid for the time being. The July soybean chart support is the lower Bollinger
Band at $8.29, and resistance the 20-day at $8.43 which we are now well above,
with the upper Bollinger Band at $8.57 the next round up, and we are testing it
here this morning.
Wheat trade is 3 to 6 cents higher at midday with trade bouncing back with
support from the dollar this morning. The plains look to trend warmer and drier
to push the crop along this week. Kansas City is at a 54-cent discount to
Chicago on the July with narrower action today, while Minneapolis is back to a
6 cent premium. The July Kansas City chart support is the lower Bollinger Band
at $4.32 which we tested last week before bouncing with resistance the 20-day
at 4.59 which 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 firstname.lastname@example.org
Follow him on Twitter @davidfiala
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