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 
trade.



By David Fiala
DTN Contributing Analyst

General Comments

   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

   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.

   SOYBEANS

   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

   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


(BS)

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