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DTN Midday Grain Comments     06/26 11:07

   Grains Mixed at Midday

   Trade has faded back to mixed action at midday.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are firmer with the Dow 50 higher.  The dollar 
index is 8 lower. Interest rate products are firmer. Energies are firmer with 
crude 1.65 higher. Livestock trade is mostly higher led by feeder cattle. 
Precious metals are weaker with gold 3.90 lower.

   CORN

   Corn trade is 1 to 3 cents lower at midday with trade remaining rangebound 
as we draw closer to the report on Friday. The forecast looks to trend towards 
warmer and drier into July which will be needed to boost growth. The weekly 
ethanol report showed production off by 9,000 barrels per day, and stocks down 
48,000 barrels. Corn basis remains on a firmer trend, especially for the 
Eastern Belt. Looking ahead to the report on Friday expectations are for 86.62 
million acres of corn on a range of 82 million to 89.8 million vs, 92.79 
million in March, with stocks at 5.35 billion on a range of 5.174 to 5.90 
billion, with full prevent plant not expected to be incorporated until August. 
On the July nearby chart support is the 10-day at $4.47 which we are test at 
midday, with the 20-day at $4.35 below there. Resistance is the upper Bollinger 
Band at $4.61. 

   SOYBEANS

   Soybean trade is 2 to 4 cents lower with range bound trade continuing with 
little fresh news today. Meal is 1.50 to $2.50 lower and oil is narrowly mixed. 
Crush margins remain solidly positive overall with meal regaining the lead to 
start the week and oil leading today. World export demand remains slow, with 
the real remaining near the upper end of the range but still cheap vs. the 
dollar, but the USDA did announce 145,000 metric tons of old crop sold to 
unknown. Field work will likely be slowed again in many areas with days now 
getting shorter for soybean growth. The report is expected to show soybean 
acres as 84.35 million on a range of 81 million to 86.5 million. Stocks are 
expected to be 1.861 billion bushels on a range of 1.7 billion to 1.962 
billion. The July chart support is the 100-day at $8.93 with the 200-day above 
the market at 9.07 which we failed to hold.

   WHEAT

   Wheat trade is 3 to 8 cents higher at with harvest for winter wheat expected 
to expand more towards the weekend with delays still in place today. The Kansas 
City/Chicago spread has widened to new records again this a.m. The warmer 
weather should get combines moving more in the short term with above 90 degrees 
expected for the Plains. The dollar is below 96 on the index with the slide 
arrested for now. Black Sea area weather remains mixed with world values soft 
and short term heat in place. Hard red wheat is working into feed rations in 
some areas with the bounce in corn values, and reduced quality may increase 
feeding on that front. On the report, wheat acres are expected to be 45.65 
million acres on a range of 44.5 million to 46.10 million, and stocks at 1.10 
billion with a range of 1.077 billion vs. 1.16 billion bushels. On the July 
Kansas City chart, support is the 10-day and 20-day at $4.63-4.64, at which we 
are tested this morning with more support at the lower Bollinger band at 4.43, 
and resistance the recent high at $4.73. 

   

   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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