DTN Midday Grain Comments 07/25 10:55

DTN Midday Grain Comments 07/25 10:55 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 11 to 14 cents higher at midday Monday; soybean futures are 25 to 29 cents higher; wheat futures are 13 to 22 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 11 to 14 cents higher at midday Monday; soybean futures are 25 to 29 cents higher; wheat futures are 13 to 22 cents higher. The U.S. stock market is mixed with the DOW up 110 points. The U.S. Dollar Index is 18 points lower. Interest rate products are mostly weaker. Energies are firmer with crude up 1.80. Livestock trade is mixed. Precious metals are mixed with gold $11.10 lower. CORN: Corn futures are 11 to 14 cents higher at midday with trade finding broad ag buying early on, along with oversold conditions. The trade is digesting the scope of the weekend and Monday's rains, along with the forecast ahead, as trade bounced back from a test of the lows this morning. Short-term forecasts are cooler with rains working Monday in many of the drier areas, with the second week forecast showing warmer and drier for the western end of the Corn Belt again. 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 in the short term ahead of maintenance season. Weekly export inspections were soft at 724,214 metric tons (mt). Weekly crop progress is expected to show steady to slightly lower conditions, with maturity catching up closer to average. Basis will be watched to see if strength holds with spread action soft Monday. On the September chart, support is the fresh low at $5.61 1/2 scored late in the session with the lower Bollinger Band just below that at $5.54 and the 20-day moving average above the market at $6.12. SOYBEANS: Soybean futures are 25 to 29 cents higher at midday with trade working to build on the gains from Friday and looking closer at the August forecast, along with how demand holds up. Meal is $13.00 to $14.00 higher and oil is narrowly mixed. 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 the first week of August looking drier for most. Basis is fading a bit at processors and exporters in recent days with the daily export wire mostly quiet. Weekly export inspections were in line seasonally at 388,212 mt. Weekly crop progress is expected to show steady to slightly lower conditions with maturity getting closer to normal with the warm-up. On the September soybean chart, support is the low at $13.04 1/2 with the lower Bollinger Band at $12.84 and the 20-day moving average at $13.88, well above the market. WHEAT: Wheat futures are 13 to 22 cents higher at midday with trade rebounding after Ukraine ports were attacked over the weekend, immediately after the corridor deal, raising doubts about the deal, along with oversold conditions and easing harvest pressure with some moments of mixed action during the day session. 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 weekend and early this week, while spring wheat areas see mostly good conditions short term with weekly crop progress expected to be steady to better again while maturity catches up a little bit, and winter wheat harvest enters the final phase. Weekly export inspections improved at 475,426 mt. 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 with questions about how much Ukraine wheat will show up short term. The KC September chart has support at the fresh low at $8.14 1/2 with the lower Bollinger Band at $7.96 and the 20-day moving average still well above the market at $8.92. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.