DTN Midday Grain Comments     06/02 12:02

   Corn Futures Lower at Midday; Soybeans Higher; Wheat Mixed

   Corn futures are 1 to 4 cents lower at midday Friday; soybean futures are 9 
to 16 cents higher; wheat futures are 8 cents lower to 8 cents higher.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn futures are 1 to 4 cents lower at midday Friday; soybean futures are 9 
to 16 cents higher; wheat futures are 8 cents lower to 8 cents higher. The U.S. 
stock market is sharply firmer with the S&P up 60 points. The U.S. Dollar Index 
is 30 points higher. Interest rate products are weaker. Energies are firmer 
with crude 1.60 higher and natural gas up .06. Livestock trade is mostly higher 
with hogs leading. Precious metals are mostly lower with gold off 15.00.

CORN:

   Corn futures are 1 to 4 cents lower at midday with softer spread action. New 
crop continues to hold near the upper end of the range with little fresh news 
heading towards the weekend. Position-squaring due to weekend forecasts is 
likely to end the session. Ethanol margins should be steady with corn holding 
the range and unleaded extending recent gains. Weekly export sales remained 
soft at 186,700 metric tons (mt) old crop and 312,600 mt new. Basis continues 
to hold a softer tone with better movement possibilities as fieldwork wraps up 
with most rains expected to stay in the Western Corn Belt in the short term. 
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. On 
the July chart we have support at the 20-day moving average at $5.83, which we 
tested Friday morning, with trade fading back from $6.00 again Thursday.

SOYBEANS:

   Soybean futures are 9 to 16 cents higher with firmer spread action. Trade is 
working to consolidate the rebound further with oil leading the product 
complex. Meal is narrowly mixed and oil is 90 to 100 points higher. Basis will 
likely remain a little softer with more buyers rolling to the back months. 
Planting should be on the homestretch nationally with short-term temps to boost 
emergence with the center of the belt watched for dryness in the short term. 
Weekly export sales had product strength with 123,400 mt sold of old crop 
soybeans; 301,000 mt new; 405,400 old meal; 61,700 new; 1,700 old oil; 3,200 
new. July chart support is the lower Bollinger Band at $12.67, which we bounced 
off Friday, with the 20-day moving average still well above the market at 
$13.56.

WHEAT:

   Wheat futures are 8 cents lower to 8 cents higher with spring wheat leading 
at midday. Action is two-sided as trade works to consolidate the recent range 
into the weekend. Plains rains are expected to continue but the potential for 
improvement for this year's crop is limited; SRW and spring wheat areas should 
move along, development-wise. The dollar is just off the recent highs, with 
Matif wheat just a touch higher. Weekly export sales showed cancellations of 
210,500 mt for old-crop as the marketing year closes, with 466,500 mt sales of 
new crop. 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 just below 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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