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DTN Midday Grain Comments 06/01 11:03
Corn, Soybean Futures Higher at Midday; Wheat Flat-Higher
Corn futures are 6 to 9 cents higher at midday Thursday; soybean futures are
22 to 29 cents higher; wheat futures are flat to 15 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 6 to 9 cents higher at midday Thursday; soybean futures are
22 to 29 cents higher; wheat futures are flat to 15 cents higher. The U.S.
stock market is firmer with the S&P up 28 points. The U.S. Dollar Index is 60
points lower. Interest rate products are firmer. Energies are mixed with crude
2.25 higher and natural gas off .10. Livestock trade is mostly higher with live
cattle leading. Precious metals are firmer with gold up 15.00.
CORN:
Corn futures are 6 to 9 cents higher at midday with trade pushing back
toward recent highs. Broad ag market strength starts June with central Corn
Belt weather concerns and a risk-on sentiment as the debt ceiling bill moves
forward. Ethanol margins should be steady with corn and unleaded moving up.
Ethanol production was 21,000 barrels per day (bpd) higher on the weekly
report, while stocks rose by 291,000 barrels. The Weekly Export Sales and
Shipments report is delayed until Frida due to Monday's holiday. Basis
continues to hold a softer tone with better movement possibilities as fieldwork
wraps up and some scattered rains Thursday morning. The second crop in Brazil
continues to head toward the home stretch with cheap enough offers to control
export business but a drier finish for some areas hanging around. On the July
chart, we have support at the 20-day moving average at $5.85 with trade back
testing $6.00 at midday.
SOYBEANS:
Soybean futures are 22 to 29 cents higher at midday with trade working to
extend the reversal from the fresh lows scored Wednesday. There is broad
product strength so far lending support, along with spillover support. Meal is
$5.50 to $6.50 higher and oil is 130 to 150 points higher. Basis will likely
remain a little softer as fieldwork catches up. Plantings should be on the
homestretch nationally with short-term temps to boost emergence and the center
of the belt watched for dryness. July chart support is the lower Bollinger Band
at $12.65, which we bounced off Thursday, with the 20-day moving average still
well above the market at $13.60.
WHEAT:
Wheat futures are flat to 15 cents higher at midday with Chicago leading
after broad buying to start. KC trade hangs just below $8.00 with spread action
relaxing. Plains rains are expected to continue. but abandoned acres keep yield
ideas lower. Chicago wheat has improved, and spring wheat is catching up to
average progress. The dollar is just off the recent highs, with Matif wheat
following U.S. wheat higher. On the KC July Chart, the lower Bollinger band at
$7.62 is support with $8.00 becoming the first level of resistance, which we
are testing at midday with the 20-day moving average above the market at $8.38.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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