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DTN Midday Grain Comments     06/21 11:58

   Wheat, Soybeans Lower at Midday

   Trade is mostly lower at midday in quiet action.

By David Fiala
DTN Contributing Analyst

 General Comments

   The U.S. stock market indices are flat to lower with the Dow down 45 at 
midday. The interest rate products are lower. The dollar index is 7 lower. 
Energies are mixed with crude down 0.08. Livestock trade is mostly lower. 
Precious metals are mixed with gold up $3.80.


   Corn trade is flat to 2 cents higher at midday with trade find light buying 
with continued focus on weather coming forward and trade getting a bit oversold 
from the start to the week. The weekly ethanol production report showed 
production down 1.2%, stocks down 1.2% with gasoline demand rebounding from the 
lows seen last week. The weather forecast continues to evolve with the 
placement of the tropical system making landfall this week the biggest question 
for Corn Belt rain, with heat edging back in during the extended forecast for 
the Plains but mild elsewhere. On the July corn contract support is at the 
spring low at $3.60 1/2 with resistance the 200-day at $3.71. 


   Soybean trade is 2 to 6 cents lower at midday with initial overnight buying 
evaporating during the day session again. Meal is flat to $1 lower and oil is 
flat to 10 points lower. South America should continue to push bushels into the 
world export market at very competitive prices. The slide in soyoil hurt crush 
margins Tuesday with the biodiesel uncertainty still lingering with the EPA 
punting on rulings again. July beans have major support at the $9.09 1/2 
14-month low, with the 20-day at $9.29 first resistance, and the 10-day at 
$9.34 above that.  


   Wheat trade is 2 to 5 cents lower at midday with harvest pressure and 
overbought conditions helping to trigger a pull back with continued volatile 
trade expected in the near term. Winter wheat harvest continues to expand in 
Kansas with mixed results continuing with good yields and poor protein in 
central Kansas and lighter yields and better protein west. Europe and the Black 
Sea area continues to see warm and dry temperatures for the immediate future. 
The dollar has firmed off the lows but the larger down trend still looks to be 
intact. On the July Kansas City contract support is the 10-day at $4.61 with 
resistance the recent high at $4.81.David 

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


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