DTN Midday Grain Comments 07/08 11:02

DTN Midday Grain Comments 07/08 11:02 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 17 to 18 cents higher at midday Friday; soybean futures are 21 to 23 cents higher and wheat is 37 to 48 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 17 to 18 cents higher at midday Friday; soybean futures are 21 to 23 cents higher and wheat is 37 to 48 cents higher. The U.S. stock market is firmer with the DOW up 65 points. The U.S. Dollar Index is 25 points lower. Interest rate products are weaker. Energies are mixed with crude up 1.80. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold $4.30 higher. CORN: Corn futures are 17 to 18 cents higher at midday with slightly weaker spread action as trade continues to build on the midweek rebound with oversold conditions, value buyers, and a drier forecast for many adding support. As we push into pollination season, rains have worked through much of the Corn Belt short term, while normal to above normal temps and drier weather are expected to be the rule into midmonth. USDA's Weekly Export Sales and Shipments report Friday was at a marketing year low at -66,000 metric tons (mt) of old crop. Ethanol margins are still strong even with the pullback in corn offsetting the pullback in unleaded for blenders short term. Basis will be watched to see if strength holds with spread action remaining firm. On the September chart, support is the fresh low at $5.82 with lower Bollinger Band just below that at $5.76, with the 20-day moving average well above the market at $6.77. SOYBEANS: Soybean futures are 21 to 23 cents higher at midday with two-sided trade early after the nearby gaps filled overnight before broad buying continued to build during the day session. Mea1 is $6.50 to $7.50 higher, and oil is 70 to 80 points higher. Biodiesel margins are very good at the moment, which should bolster crush recovery into fall with fresh capacity expected to come online then, assuming the margin picture doesn't change significantly. South America is moving towards post-harvest footing at this point. Double-crop planting is about done in the U.S. with the key reproductive time frame still a month off for most with short-term dryness on deck. Basis is fading a bit at processors and exporters in recent days with the daily export wire remaining quiet. Weekly export sales were poor again with the rumored cancellations being confirmed at -160,000 mt of old-crop 240,100 mt sold of new crop; soy meal at 148,800 sold of old crop and 30,400 of new crop; and no oil. On the August soybean chart, support is the fresh low at $14.24 with lower Bollinger Band at $14.25 with the 20-day moving averages at $15.61, well above the market. WHEAT: Wheat futures are 37 to 48 cents higher at midday with support from the row crops along with harvest pressure to continue fading with hotter weather in Continental Europe again as they press towards harvest while oversold conditions continue to ease. Plains weather should allow for harvest to push quickly toward the homestretch for winter wheat. 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 supplies and shipments remaining limited short term. Weekly export sales improved slightly at 286,400 mt. The KC September chart has support at the fresh low at $8.32 1/2, scored Wednesday, with the lower Bollinger Band at $8.11 and the 20-day moving average still well above the market at $10.24. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.