DTN Midday Grain Comments 07/21 11:05

DTN Midday Grain Comments 07/21 11:05 Corn, Soybean Futures Lower at Midday; Wheat Mixed Corn futures are 7 to 10 cents lower at midday Thursday; soybean futures are 20 to 24 cents lower; wheat futures are 4 cents lower to 4 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 7 to 10 cents lower at midday Thursday; soybean futures are 20 to 24 cents lower; wheat futures are 4 cents lower to 4 cents higher. The U.S. stock market is mixed with the DOW off 115 points. The U.S. Dollar Index is 14 points lower. Interest rate products are firmer. Energies are weaker with crude down 3.65. Livestock trade is mixed. Precious metals are mixed with gold $10.30 higher. CORN: Corn futures are 7 to 10 cents lower at midday with trade washing back to the lows amid outside market pressure and better weather for much of the belt for next week with action a bit off the lows at midday. Short-term forecasts are drier and warmer this week for most with potential improvement into the weekend for parts of the center of the belt, which looks to continue for the second week with the first part of August to come into focus soon. The daily export wire has remained limited with the strong dollar and better South American competition, but the sharp dollar reversal should help if the losses extend further. Ethanol margins will continue to be compressed by falling driving demand short term ahead of maintenance season. Weekly export sales remain soft at 33,900 metric tons (mt) of old-crop corn and 570,200 mt of new crop. Basis will be watched to see if strength holds with spread action firming a bit Thursday. On the September chart, support is the fresh low at $5.75 1/4, scored overnight, with the lower Bollinger Band just below that at $5.61 and the 20-day moving average above the market at $6.22. SOYBEANS: Soybean futures are 20 to 24 cents lower at midday as trade presses into the lows with expectations of improved weather, along with further export sales confirmation needed with nothing on the wire today. Meal is flat to $1.00 lower, and oil is 125 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 two to three weeks from the key reproductive time frame with better rains in the extended early August forecast and more follow-up needed throughout the month. Weekly export sales remain soft at 203,500 mo of old crop; 254,700 mt of new crop; 109,300 of old meal; 27,600 of new meal; 600 of oil. Basis is fading a bit at processors and exporters in recent days. On the September soybean chart, support is the low at $13.21 with the lower Bollinger Band at $13.00 with the 20-day moving average at $14.00, well above the market. WHEAT: Wheat futures are 4 cents lower to 4 cents higher with mostly choppy action so far and negative spillover from the row crops limiting upside with wheat able to find buying on dips. Plains weather should allow for harvest to push to mostly wrap up, with planting moisture soon becoming a concern for the Southern Plains with some relief this week, while spring wheat areas see mostly good conditions short term. The dollar is showing a reversal from long-term highs but is finding some strength Thursday, and 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 with focus on insurers to cover ships. Weekly export sales remained solid at 511,100 mt. The KC September chart has support at the fresh low of $8.20, which we have found good buying from, with the lower Bollinger Band at $7.96 and the 20-day moving average still well above the market at $9.09. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.