DTN Midday Grain Comments 07/22 10:53

DTN Midday Grain Comments 07/22 10:53 Soybean Futures Higher at Midday; Corn Mixed; Wheat Lower Corn futures are narrowly mixed at midday Friday; soybean futures are 20 to 24 cents higher; wheat futures are 34 to 36 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are narrowly mixed at midday Friday; soybean futures are 20 to 24 cents higher; wheat futures are 34 to 36 cents lower. The U.S. stock market is softer with the DOW off 60 points. The U.S. Dollar Index is 14 points lower. Interest rate products are firmer. Energies are firmer with crude up 1.05. Livestock trade is firmer. Precious metals are firmer with gold $17.30 higher. CORN: Corn futures are narrowly mixed at midday with spillover support from soybeans, while wheat weakness and grain corridor news limit upside after fresh lows were scored overnight. Short-term forecasts are drier and warmer through Saturday for most with potential improvement into the middle of next week for parts of the center of the Corn Belt. Most trade is waiting to see if it is a full pattern shift into August. 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. Basis will be watched to see if strength holds with spread action soft Friday. On the September chart, support is the fresh low at $5.66, scored overnight, with lower Bollinger Band just below that at $5.55 and the 20-day moving average above the market at $6.17. SOYBEANS: Soybean futures are 20 to 24 cents higher with trade trying to bounce off fresh lows scored overnight amid the broad sell-off with oil trying to bounce as well. Meal is flat to $1.00 lower and oil is 180 to 190 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 with their advantage to persist until September, while 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 but more follow up needed throughout the month. Basis is fading a bit at processors and exporters in recent days. On the September soybean chart, support is the low at $13.04 1/2 with the lower Bollinger Band at $13.00 with the 20-day moving average at $13.93 -- well above the market. WHEAT: Wheat futures are 34 to 36 cents lower at midday with trade fading back to the bottom of the recent range ahead of the grain corridor agreement signing Friday morning between Russia and Ukraine. Details remain fairly sparse at this point with first shipping 10 to 14 days off. Plains weather should allow for harvest to push to mostly wrap up, with planting moisture soon to become a concern for the Southern Plains with some relief the coming seven days, while spring wheat areas see mostly good conditions short term. The dollar looks to chop just below the longer-term highs, and short-term export business will be watched with China actively sourcing euro cargos. 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 $7.96 and the 20-day moving average still well above the market at $9.01. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.