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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