DTN Midday Grain Comments 07/14 11:09

DTN Midday Grain Comments 07/14 11:09 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 8 to 9 cents higher at midday Thursday; soybean futures are 8 to 15 cents higher; wheat futures are 3 cents lower to 9 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 8 to 9 cents higher at midday Thursday; soybean futures are 8 to 15 cents higher; wheat futures are 3 cents lower to 9 cents higher. The U.S. stock market is weaker with the DOW down 350 points. The U.S. Dollar Index is 85 points higher. Interest rate products are weaker. Energies are weaker with crude down 3.20. Livestock trade is weaker. Precious metals are weaker with gold $31.00 lower. CORN: Corn futures are 8 to 9 cents higher at midday with two-sided trade so far as the weather forecast is expected to add support but negative spillover from outside markets is limiting the upside. 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 export wire will need to show value buyers picking up bushels on the break with nothing on the daily report in recent days with the strong dollar limiting upside. Export sales remained soft at 59,000 metric tons (mt) of old crop and 348,200 mt of new crop. Ethanol margins will continue to be compressed by falling demand short term. Basis will be watched to see if strength holds with spread action softening a bit in recent days. On the September chart, support is the fresh low at $5.82 with lower Bollinger Band just below that at $5.60, with the 20-day moving average above the market at $6.54. SOYBEANS: Soybean futures are 8 to 15 cents higher at midday with another rebound off the test of the lower end of the range with weather adding support and soyoil and outside markets limiting the upside. Meal is $5.50 to $6.50 higher and oil is 30 to 40 points lower. Biodiesel margins remain positive but have narrowed some with the break. South America is on post-harvest footing for shipping, while the bulk of the U.S. is three to four 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. Weekly export sales were soft again at -362,000 mt (cancellation) of old crop and 113,900 mt of new crop; meal was 8,200 mt of old crop and 145,900 of new; oil was 1,000 mt. On the August soybean chart, support is the fresh low at $14.24 with the lower Bollinger Band at $14.19 with the 20-day moving average at $15.31, well above the market. WHEAT: Wheat futures are 3 cents lower to 9 cents higher with two-sided action again with the strong dollar limiting upside along with apparent progress scored on a Ukraine shipping corridor with Northern Hemisphere harvest pressing on with mixed yields. 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. Weekly export sales were at 10-year high of 1.02 million metric tons (mmt), mostly to China, and 30,000 mt for next year. The KC September chart has support at the fresh low at $8.32 1/2 scored last week with the lower Bollinger Band at $7.84 and the 20-day moving average still well above the market at $9.70. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.