DTN Midday Grain Comments 07/01 10:48

DTN Midday Grain Comments 07/01 10:48 Grains Lower at Midday Corn trade is 7 to 11 cents lower; beans are 44 to 57 cents lower and wheat is 36 to 40 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: The U.S. stock market is weaker with the DOW down 75 points. The dollar index is 70 points higher. Interest rate products are higher. Energies are firmer with crude up 2.20. Livestock trade is firmer. Precious metals are weaker with gold flat. CORN: Corn trade is 7 to 11 cents lower at midday with two-sided trade as selling in soybeans and wheat drags trade off early gains with position squaring and fund liquidation heading towards the long weekend. Trade will continue to watch the forecast with more focus on corn pollination temperatures as we push into July with the back of the forecast looking warmer with better short-term rains expected for many, especially this weekend. On the report, numbers were in line with expectations are 4.436 billion bushels on hand vs. 4.434 expected and acres at 89.921 million vs. 89.861 expected. The export wire will need to show value buyers picking up bushels on the break with nothing on the daily report yet. The ethanol margins are likely to remain rangebound with strong blender margins remaining in place with unleaded rebounding a bit. Basis remains solid through most of the Corn Belt, with most place moving their bids to the September contract. On the September chart, support is the fresh low at $6.16 1/2 with lower Bollinger Band just above that at $6.28 1/2, with the 20-day well above the market at $7.00. SOYBEANS: Soybean trade is 44 to 57 cents lower at midday with broad selling accelerating as funds liquidate after trade failed to hold post report strength on the sharply lower acre number at 88.325 million vs. 90.446 expected with weather threats remaining limited short term. Mea1 is 12.00 to 13.00 lower and oil is 160 to 180 points lower. Also on the report, stocks were 971 million bushels vs. 965 million expected. Bio-diesel margins are very good at the moment which should bolster crush recovery into fall with fresh capacity expected to come online then although futures targets are up in the air with yesterday's Supreme Court ruling. South America is moving towards post-harvest footing at this point with planting wrapped up for the full season in the US, and getting started on double crop with wheat harvest moving quickly with moisture needed to boost development. Basis is fading a bit at processors and exporters in recent days with the daily wire remaining quiet. On the August soybean chart support is the lower Bollinger Band at $14.94 with the 20-day well above the market at $15.98. WHEAT: Wheat trade is 36 to 40 cents lower at midday with continued harvest pressure and spillover pressure keeping selling rolling with no surprises on the report with 660 million bushels on hand vs. 655 expected, and acres at 47.092 vs. 47.017 expected. Plains weather should allow for harvest to continue moving with few areas slowed by rains. The dollar continues to hold in the upper end of the range with the strong ruble helping competitiveness as well with Russia expected to have near-record supplies with other Black Sea supply diminishes short term with trade waiting for the next set of import tenders. The KC September chart has support at the fresh low at $9.09 scored this morning with the lower Bollinger Band at $9.13 and the 20-day still well above the market at $10.80. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.