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DTN Midday Grain Comments     06/01 11:03

   Corn, Wheat Lower, Soybeans Higher at Midday

   Corn futures are 1 to 2 cents lower at midday Monday, soybean futures are 2 
to 3 cents higher, and wheat futures are 1 to 8 cents lower.

David Fiala,DTN Contributing Analyst


   The U.S. stock market is flat with the Dow 30 points higher. The U.S. Dollar 
Index is 40 points lower. Interest rate products are weaker. Energies are 
weaker with crude down $1.00. Livestock trade is mixed with cattle leading. 
Precious metals are firmer with gold up 2.00.


   Corn futures are 1 to 2 cents lower at midday with trade rebounding off the 
selling seen late in the overnight session on China trade concerns. Ethanol 
margins remain stable with unleaded demand holding the recent plateau with some 
improvement in demand seen this weekend. Warmer drier weather for most is 
expected for the bulk of the week. Basis has shown isolated signs of strength 
this week. Weekly export inspections were good at 1.21 million metric tons 
(mmt), with weekly crop progress likely to show steady conditions with planting 
nearly complete and emergence just ahead of average. On the July contract 
support is the 20-day moving average at $3.19, and resistance the fresh high at 


   Soybean futures are 1 to 2 cents higher with trade using the weaker dollar 
to offset the trade issues so far this morning. Meal is flat to $1.00 higher 
and oil is 15 to 25 points higher. South America continues to move along 
harvest-wise with strong shipments out of Brazil likely to continue unless port 
issues redevelop due to strikes or virus-related absenteeism. Crush margins 
remain solid for the time being. Weekly export inspections remain soft at 
396,387 metric tons (mt), with weekly crop progress expected to show planting 
and emergence ahead of average. The July soybean chart support is the lower 
Bollinger band at $8.29, and resistance the 20-day moving average at $8.42, 
which we are testing at midday.


   Wheat futures are 2 to 8 cents lower with trade selling off Monday morning 
with better near-term Euro and Russia forecasts along with the new marketing 
year for winter wheat starting. The Plains look to trend warmer and drier with 
harvest underway in the far south. KC is at a 56-cent discount to Chicago on 
the July with wider action so far, while Minneapolis is back to a 3-cent 
premium. Weekly export inspections remained rangebound at 499,353 mt. Weekly 
crop progress is expected to show maturity just below normal with steady 
conditions for winter wheat, while spring wheat planting and emergence remain 
below average. The July KC chart support is the lower Bollinger band at $4.32, 
which we tested last week before bouncing, with resistance at the 20-day moving 
average at 4.64, which we are just below at midday.

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

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