DTN Midday Grain Comments 07/18 10:50

DTN Midday Grain Comments 07/18 10:50 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 11 to 12 cents higher at midday Monday; soybean futures are 40 to 43 cents higher; wheat futures are 30 to 37 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 11 to 12 cents higher at midday Monday; soybean futures are 40 to 43 cents higher; wheat futures are 30 to 37 cents higher. The U.S. stock market is firmer with the DOW up 150 points. The U.S. Dollar Index is 88 points lower. Interest rate products are weaker. Energies are firmer with crude up 4.25. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold $5.00 higher. CORN: Corn futures are 11 to 12 cents higher at midday with early mixed trade turning stronger after rains moved through parts of the Corn Belt, while other areas continue to struggle, and outside markets are turning more positive short term. Short-term forecasts are drier and warmer this week for most with potential improvement after. The export wire has remained limited with the strong dollar and better South American competition. Ethanol margins will continue to be compressed by falling driving demand short term. Basis will be watched to see if strength holds with spread action softening a bit in recent days; September/December is around even, which shows short-term demand may be slowing further. Weekly export inspections improved slightly at 1.073 million metric tons (mmt). Weekly crop progress is expected to show conditions steady to 2% lower with maturity catching up a little bit toward the five-year average. On the September chart, support is the fresh low at $5.82 with lower Bollinger Band just below that at $5.58, with the 20-day moving average above the market at $6.41. SOYBEANS: Soybean futures are 40 to 43 cents higher at midday with buying picking up during the day session with strength from both product categories. Meal is $5.00 to $6.00 higher and oil is 250 to 260 points higher. Biodiesel margins remain positive but have narrowed some with the break in diesel values. 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 with better rains for the east short term. Basis is fading a bit at processors and exporters in recent days with the daily export wire remaining quiet. Weekly export inspections remained rangebound at 362,622 metric tons (mt). Weekly crop progress is expected to show conditions steady to 2% lower and maturity still lagging the five-year average. On the September soybean chart support is the fresh low at $13.21 with lower Bollinger Band at $12.97 with the 20-day moving average at $14.25. well above the market. WHEAT: Wheat futures are 30 to 37 cents higher at midday with winter wheat action leading as harvest pressure looks to be easing along with fresh import tenders that U.S. origin looks competitive in. Plains weather should allow for harvest to push to mostly wrap up, with planting moisture soon becoming a concern for the Southern Plains, while spring wheat areas saw mixed conditions. Weekly crop progress should show winter wheat down to the last 20% of harvest nationally, with spring wheat showing steady conditions and still well behind the five-year average, maturity-wise. The dollar is scoring fresh highs, and short-term export business will be watched with the surprise strength last week. Weekly export inspections were disappointing at 185.989 mt. The KC September chart has support at the fresh low at $8.20, which we have found good buying from, with the lower Bollinger Band at $7.82 and the 20-day moving average still well above the market at $9.39. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.