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DTN Midday Grain Comments     06/23 11:23

   Wheat Higher at Midday

   Corn and beans are at our spring-summer lows at midday while spring wheat is 
seeing double-digit gains. 

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are higher with the Dow up 10 points. The 
interest rate products are mixed. The dollar index is 40 points lower. Energies 
are firmer with crude up 0.40. Livestock trade is mixed. Precious metals are 
higher with gold up $8.10.


   Corn trade is 1 to 2 cents lower at midday after some mixed overnight 
action. Trade is slow at midday with momentum flat to lower. Trade should turn 
more active this afternoon with a balance of long liquidation due to new lows 
for the move, but shorts may also want to take profits ahead of a summer 
weekend. Temperatures will be cooler over the weekend.  The weather forecast 
continues to evolve with bigger rains expected for much of the belt in the 
extended forecast returning to normal temps next week. Ethanol margins are not 
benefiting from the lower corn trade with ethanol futures slipping around 10 
cents a gallon on the week. Crude oil and unleaded are slightly higher at 
midday but they have had a negative month; crude fell around $10 a barrel from 
the late May high to the low printed on Wednesday. July corn futures have 
support at the new low at $3.60, put-in this morning, with resistance the 
200-day at $3.71. 


   Soybean trade is fractionally to 4 cents lower at midday with selling 
returning during the day session after some overnight strength. Meal is flat to 
$1 lower and oil is 5 to 15 points higher. The possibility of added acres and 
demand concerns are weighing on the market. The USDA June Planting Intentions 
and June Quarterly Stocks reports will be out one week from now. South America 
should continue to push bushels into the world export market at very 
competitive prices. Spread trade has favored old crop today, showing some 
demand green shoots. July beans have major support at the $9.00 14-month low 
made this morning, with the 20-day at $9.25 first resistance, and the 10-day at 
$9.26 above that.  


   Wheat trade is 2 to 3 cents higher on winter wheat contracts and 15 cents 
higher on Minneapolis trade at midday. Minneapolis is leading the strength with 
weather remaining challenging for the northern plains and European weather 
concerns. Winter wheat harvest expansion is limiting upside for winter wheat. 
Protein levels have been disappointing in Kansas with mixed yields so far. 
Europe and the Black Sea area continues to see warm and dry temperatures for 
the immediate future with some relief potentially offered into early July for 
western Europe. The dollar has slid back to the lower end of the range which 
should help export competitiveness. On the July Kansas City contract support is 
the 10-day at $4.64 with the 200-day at $4.51 below that with resistance the 
recent high at $4.81.

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered Advisor.
He can be reached at 
Follow him on Twitter @davidfiala


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