DTN Midday Grain Comments     06/27 11:01

   Corn, Wheat Lower; Beans Higher Midday Monday

   Corn trade is 8 to 19 cents lower; beans are 8 to 17 cents higher and wheat 
is 2 to 10 cents lower.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn trade is 8 to 19 cents lower; beans are 8 to 17 cents higher and wheat 
is 2 to 10 cents lower. The U.S. stock market is mixed with the Dow up 30 
points. The U.S. Dollar Index is 0.50 lower. Interest rate products are weaker. 
Energies are mixed with crude up $1.30. Livestock trade is mixed with feeder 
cattle leading. Precious metals are mixed with gold down $9.00.

CORN:

   Corn trade is 8 to 19 cents lower at midday Monday with trade firming back 
from the early day session lows and stronger spread trade after rains in much 
of the central belt over the weekend. Traders will continue to watch the 
forecast with more focus on corn pollination temperatures as we push into July, 
with concerns muted currently. The export wire will need to show value buyers 
picking up bushels on the break with nothing on the daily report yet. Weekly 
export inspections remained rangebound at 1.246 million metric tons, with 
weekly crop progress expected to show steady to slightly lower condition 
ratings with maturity catching up to average. The ethanol margins are likely to 
remain rangebound with strong blender margins remaining in place with unleaded 
moderating in recent days. Basis remains solid through most of the Corn Belt, 
with most place moving their bids to the September contract. On the July 
contract chart, we have support at the 100-day at $7.36 with resistance at the 
$7.59 20-day. 

SOYBEANS:

   Soybean trade is 8 to 17 cents higher at midday with firmer spread trade and 
buying developing after the gap lower on the opening, with oil retaking the 
lead from meal to bolster crush margins during the day session. Meal is $7.50 
to $8.50 higher, and oil is 0.90 cent to 1.00 cent higher. Biodiesel margins 
are very good at the moment, which should bolster crush recovery a bit. South 
America is moving towards post-harvest footing at this point with planting 
wrapped up for full season in the U.S. and is getting started on double crop 
with wheat harvest moving quickly. Basis is fading a bit at processors and 
exporters in recent days with the daily wire remaining quiet. Weekly export 
inspections stayed within the recent range at 468,309 metric tons, with weekly 
crop progress expected to show conditions steady to slightly lower, with 
maturity near average. On the July soybean chart, support is at $15.78, the May 
9 low, with resistance is now at the 100-day at $16.48, then the 20-day at 
$16.94.

WHEAT:

   Wheat trade is 2 to 10 cents lower at midday with two-sided trade and fresh 
lows scored early in the day session as harvest continues to move forward in 
the U.S. and the rest of the Northern Hemisphere, along with mixed interest in 
the world export market. The Chicago contract continues to show the most 
strength as it has led the most recent sessions with Minneapolis struggling as 
spring wheat is expected to show further improvement on the crop progress 
report Monday afternoon. Winter wheat is expected to be showing harvest close 
to half complete along with steady conditions. Weather in the Plains should 
allow for harvest to continue moving with a few areas slowed by rains. The 
dollar continues to hold in the upper end of the range with the strong ruble 
helping competitiveness as well with Russia expected to have near record 
supplies with other Black Sea supply diminishes with Middle East tenders 
shrinking. Weekly export inspections picked up a little at 352,404 metric tons. 
The KC July chart has support at the fresh low at $9.76 scored overnight with 
the lower Bollinger Band at $9.86 and the 20-day still well above the market at 
$11.17.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on Twitter @davidfiala




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