DTN Midday Grain Comments 06/04 11:06
Grains Higher at Midday
Corn is 4 to 5 cents higher, soybeans are 11 to 12 cents higher, and wheat
is 7 to 17 cents higher.
David Fiala,DTN Contributing Analyst
The U.S. stock market is flat with the Dow unchanged. The dollar index is 44
points lower. Interest rate products are weaker. Energies are mixed with crude
down $0.60. Livestock trade is mixed with cattle leading. Precious metals are
higher with gold up $11.
Corn trade is 4 to 5 cents higher with trade following soybeans and wheat
higher with good spread strength. Ethanol margins remain stable with
improvements in driving demand so far this week and a mostly steady energy
complex. Warmer, drier weather for most of the Corn Belt is expected for the
bulk of the week before cooling next week. The West is expected to stay dry.
Basis has been mostly steady to start the week. Weekly export sales were OK at
637,500 metric tons of old crop and 27,500 of new. On the July contract,
support is the 20-day at $3.20 and resistance the fresh high at $3.31.
Soybeans trade is 11 to 12 cents higher at midday with the weaker dollar
continuing to add support amid the constant back and forth on sales and
cancellations. Another 120,000 metric tons of sales were confirmed to unknown.
Meal is $4.00 to $5.00 higher, and oil is 5 to 15 points lower. South America
continues to move soybeans on to the export market as harvest winds down with
the real flat and losing ground versus the dollar Thursday. Crush margins
remain solid for the time being. Weekly export sales were OK at 495,200 metric
tons of old crop, 607,400 of new, 558,900 of old meal and 25,000 of new meal,
as well as 9,400 of oil. The July soybean chart support is the upper Bollinger
band at $8.58 that we have surged above, with resistance the $8.90 area that
was the earlier spring high.
Wheat trade is 8 to 17 cents higher at midday with trade bouncing back with
support from the dollar and warmer weather for the Plains and little change
elsewhere in the Northern Hemisphere. The Plains look to trend warmer and drier
to push the crop along this week with harvest starting to expand to the south.
KC is at a 52-cent discount to Chicago on the July with steady action Thursday,
while Minneapolis is back to a 4-cent premium. Weekly export sales were decent
at 179,500 metric tons of old crop and 437,300 of new crop. The July KC chart
support is the lower Bollinger band at $4.32, which we tested last week, before
bouncing with resistance. The 20-day is at $4.59, which we are above overnight.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
(c) Copyright 2020 DTN, LLC. All rights reserved.
DTN offers additional daily information available free through DTN Snapshot – sign up