Family Business since 1946!
DTN Midday Grain Comments 06/19 11:08
Wheat Leads Grain Trade Higher at Midday
Wheat is seeing double-digit midday gains, corn and beans are up in slow
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are lower with the Dow futures off 20. The
interest rate products are flat to higher. The dollar index is 6 lower.
Energies are mixed with crude off $0.20. Livestock trade is higher. Precious
metals are mixed with gold up $5.
Corn trade is 1 to 6 higher with July the weakest at midday. Outside markets
are mostly neutral, so the upside chart momentum is noted for our higher
action. Old-crop supplies remain tight, but the board strength has softened
some basis levels and some long profit taking in July and the bull spreads. The
December contract has chart support at $5.47 then $5.44. Ethanol production was
off slightly to 873,000 barrels a day, with inventories up a bit to 16.5
million barrels. A private forecaster pegged acres at 95.262 million acres.
Soybean trade is flat to 3 higher on old-crop trade, and 5 to 10 higher on
new crop trade. Meal is $1 to $2 lower and bean oil is 30 to 40 higher. Weather
looks like it will continue to promote delays in the wettest areas. November
beans continue to trade right around the major moving averages in the 12.90 to
12.95 range, with a positive close opening trade up for a little better move.
Logistical issues on South American shipments continue to be a lingering issue
as far as reliving old crop tightness in the U.S. A private economist pegged
bean acres at 77.76 million acres.
Wheat trade is 10 to 14 higher across the three exchanges at midday with
short covering surfacing. The July Chicago contract has support at $6.74, the
May low, then $6.65, the April low. Resistance is in the $6.95-$7.00 area,
which we have traded through at midday. Harvest should continue to expand with
the warmest temperatures in the winter wheat growing areas although there are
some delays in Oklahoma and Kansas, while spring wheat should have ample
moisture for now, but that may limit late planting attempts on the remaining
acres. World wheat conditions generally look adequate for the moment, but there
are some areas that are struggling.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Trading Adviser
Copyright 2013 DTN/The Progressive Farmer. All rights reserved.
For more free DTN information sent right to your email each morning - click here
to sign up for DTN Snapshot.