DTN Midday Grain Comments 07/13 10:48

DTN Midday Grain Comments 07/13 10:48 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 12 to 13 cents higher at midday Wednesday; soybean futures are 11 to 15 cents higher; wheat futures are 10 to 15 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 12 to 13 cents higher at midday Wednesday; soybean futures are 11 to 15 cents higher; wheat futures are 10 to 15 cents higher. The U.S. stock market is weaker with the DOW down 205 points. The U.S. Dollar Index is 45 points lower. Interest rate products are mixed. Energies are firmer with crude up 1.50. Livestock trade is firmer. Precious metals are firmer with gold $17.00 higher. CORN: Corn futures are 12 to 13 cents higher at midday with two-sided trade early turning stronger during the day session as we move past the inflation report and focus on weather concerns and still oversold conditions. Short-term forecasts look dry for most with some showers expected to the north and east with above normal temps expected later in the week. The weekly ethanol report showed production down 39,000 barrels per day (bpd), with stocks 116,000 barrels higher on the week. Basis will be watched to see if strength holds with spread action softening a bit in recent days. On the WASDE report, yield was left unchanged at 177.0 bpa with production edging slightly higher on more acres, with old-crop carryout rising to 1.51 billion bushels (bb) and new crop at 1.470 bb, up 35 million bushels (mb) and 70 mb, respectively, from last month; world numbers edged slightly higher. On the September chart, support is the fresh low at $5.82 with the lower Bollinger Band just below that at $5.60, and the 20-day moving average above the market at $6.60. SOYBEANS: Soybean futures are 11 to 15 cents higher with active two-sided trade so far, with action bouncing solidly off the overnight lows, but struggling to match the moves of the grains at midday. Meal is $7.00 to $8.00 higher and oil is 40 to 60 points lower. Biodiesel margins remain strong at the moment to keep some support under oil. South America is on post-harvest footing for shipping, while the bulk of the U.S. is 3 to 4 weeks from the key reproductive time frame. Basis is fading a bit at processors and exporters in recent days with the daily export wire remaining quiet. On the report, yield was unchanged at 51.5 bpa with old-crop carryout rising slightly to 215 mb from 205 mb last month, and new crop falling to 230 mb from 280 mb last month, with world numbers edging slightly higher. On the August soybean chart, support is the fresh low at $14.24 with the lower Bollinger Band at $14.19 and the 20-day moving average at $15.36, well above the market. WHEAT: Wheat futures are 10 to 15 cents higher at midday with trade working to rebound with less-negative spillover from the row crops. The dollar continues to limit upside at two-decade highs, even as it backs off a bit Wednesday, along with further grain corridor talks today in Turkey. 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 has slowed as importers assess needs. The WASDE report edged all-wheat production higher on a rebound in spring wheat production, while carryout rose 12 mb to 639 mb. The KC September chart has support at the fresh low of $8.32 1/2 scored last week with the lower Bollinger Band at $7.92 and the 20-day moving average still well above the market at $9.84. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.