DTN Midday Grain Comments 07/11 11:06

DTN Midday Grain Comments 07/11 11:06 Corn, Soybean, Wheat Futures are Higher at Midday Corn futures are 12 to 14 cents higher at midday Monday; soybean futures are 21 to 24 cents higher; wheat futures are 14 to 22 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 12 to 14 cents higher at midday Monday; soybean futures are 21 to 24 cents higher; wheat futures are 14 to 22 cents lower. The U.S. stock market is weaker with the DOW down 120 points. The U.S. Dollar Index is 90 points higher. Interest rate products are firmer. Energies are mixed with crude down 2.00. Livestock trade is mixed. Precious metals are weaker with gold $6.60 lower. CORN: Corn futures are 12 to 14 cents higher at midday with trade well off the overnight highs of 33 cents higher. Drier forecasts are adding support as we come off oversold conditions, while negative spillover from outside markets and some overnight pop-up showers limit upside. Some showers are working in Iowa into Illinois Monday morning, but the bulk of the Corn Belt is expected to be warm and dry this week into next as we push deeper into pollination. Weekly export inspections Monday morning were in line with recent weeks at 933,725 metric tons (mt). USDA's weekly Crop Progress report is expected to steady conditions with maturity just behind the five-year average. 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 softening a bit. For the WASDE report Tuesday, trade is looking for yield at 177.025 bushels per acre (bpa), with old-crop carryout at 1.488 billion bushels (bb), and new at 1.442 bb. 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 above the market at $6.74. SOYBEANS: Soybean futures are 21 to 24 cents higher at midday with initial gains fading as well with weather concerning ahead of tight numbers expected on the WASDE report Monday with acre adjustments from the Planting Intentions report. Meal is $5.00 to $6.00 higher and oil is 140 to 150 points higher. Biodiesel margins are very good at the moment, which should bolster crush recovery into fall with fresh capacity expected to come on line then assuming the margin picture doesn't change significantly while world veg oil prices remain muted. South America is moving toward post-harvest footing at this point with double crop about done planting in the U.S. with the key reproductive time frame still three to four weeks off with short-term dryness expected for the bulk of the belt. Basis is fading a bit at processors and exporters in recent days with the daily export wire remaining quiet. Weekly export inspections remained soft seasonally at 356,716 mt. Weekly crop progress is expected to show steady conditions and maturity still lagging the five-year average. On the report, trade is expected to see yields unchanged at 51.5 bpa with production edging lower on reduced acres with old-crop carryout at 208 million bushels (mb), in line with last month, and new crop at 211 mb, down 70 mb from last month. On the August soybean chart support is the fresh low at $14.24 with lower Bollinger Band at $14.32 with the 20-day moving average at $15.51, just above the overnight highs. WHEAT: Wheat futures are 14 to 22 cents lower with early 50-cent higher trade getting faded during the day session with dollar strength limiting export ideas along with continued Northern Hemisphere harvest pressure as Russia looks to move bushels. Plains weather should allow for harvest to push quickly toward the homestretch for winter wheat while Continental Europe struggles with short-term dryness again. The dollar is scoring fresh highs and short-term export business is expected to remain slow as major importers assess needs. Weekly export inspections edged a bit higher to 309,802 mo. Winter wheat harvest should be down to the last third to complete, while spring wheat should show steady conditions and maturity still well behind the five-year average. The KC September chart has support at the fresh low at $8.32 1/2 scored Wednesday with the lower Bollinger Band at $8.15 and the 20-day moving average still well above the market at $10.16. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.