DTN Midday Grain Comments 07/20 10:53

DTN Midday Grain Comments 07/20 10:53 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 3 to 6 cents lower at midday Wednesday; soybean futures are 22 to 27 cents lower; wheat futures are 1 to 9 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 6 cents lower at midday Wednesday; soybean futures are 22 to 27 cents lower; wheat futures are 1 to 9 cents lower. The U.S. stock market is firmer with the DOW up 50 points. The U.S. Dollar Index is 20 points higher. Interest rate products are mixed. Energies are mixed with crude down 1.25. Livestock trade is mostly higher. Precious metals are mixed with gold $4.30 lower. CORN: Corn futures are 4 to 7 cents lower at midday with trade firming off the lows with rangebound action continuing as trade continues to watch for the second week relief in the weather forecast, along with how outside market influences trend. Short-term forecasts are drier and warmer this week for most with potential improvement into the weekend for parts of the center of the Corn Belt, which looks to continue for the second week. The export wire has remained limited with the strong dollar and better South American competition, but the sharp dollar reversal could help if sustained. Ethanol margins will continue to be compressed by falling driving demand. The weekly EIA report showed production slightly higher by 29,000 barrels per day (bpd), and stocks were down by 53,000 barrels. Basis will be watched to see if strength holds with spread action firming a bit this morning. On the September chart, support is the fresh low at $5.82 with the lower Bollinger Band just below that at $5.62 and the 20-day moving average above the market at $6.28. SOYBEANS: Soybean futures are 22 to 27 cents lower at midday with trade watching for better demand to be confirmed before sustaining gains. Trade remains solidly within the recent range with USDA finally confirming some export sales on the daily wire at 136,000 metric tons (mt) to China. Meal is .50 to 1.50 lower and oil is 135 to 145 points lower. Biodiesel margins remain positive but have narrowed some with the break in diesel values. South America is on post-harvest footing for shipping with their advantage to persist until September. The bulk of the U.S. is three to four weeks from the key reproductive time frame with better rains in the extended early August forecast. Basis is fading a bit at processors and exporters in recent days. On the September soybean chart support is the fresh low at $13.21 with the lower Bollinger Band at $13.08 and the 20-day moving average at $14.09, well above the market. WHEAT: Wheat futures are 1 to 9 cents lower with Chicago action leading as volatility continues. Overnight gains evaporated again with trade back toward the lows at midday. 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 see mostly good conditions in the short term. The dollar is showing a reversal from long-term highs but is finding some strength this morning. Short-term export business will be watched to see if some Egypt sales show up even after the canceled tender. Russia/Ukraine grain corridor news continues to be awaited today. 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 $7.95 and the 20-day moving average still well above the market at $9.19. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.