DTN Midday Grain Comments 07/27 11:00

DTN Midday Grain Comments 07/27 11:00 Corn, Soybean Futures Higher at Midday; Wheat Lower Corn futures are 3 to 4 cents higher at midday Wednesday; soybean futures are 26 to 36 cents higher; wheat futures are 3 to 13 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 3 to 4 cents higher at midday Wednesday; soybean futures are 26 to 36 cents higher; wheat futures are 3 to 13 cents lower. The U.S. stock market is firmer with the DOW up 150 points. The U.S. Dollar Index is narrowly mixed. Interest rate products are firmer. Energies are mixed with crude up 2.40. Livestock trade is mostly higher. Precious metals are mixed with gold $1.00 lower. CORN: Corn futures are 3 to 4 cents higher at midday with trade working to consolidate back over $6.00 nearby after early two-sided trade with support from soybeans to start, while wheat has been a drag. Short-term forecasts are cooler with rains working in many of the drier areas over the next few days. The second week forecast shows warmer and drier for the Central and Western Corn Belt again. The daily export wire has remained limited with the strong dollar and better South American competition; the dollar is still hanging near the highs. Ethanol margins will continue to be limited by driving demand with weekly production easing 13,000 barrels per day (bpd) and stocks down 225,000 barrels on the week. Basis will be watched to see if strength holds with spread action firmer Wednesday with many areas softening in recent days. On the September chart, support is the fresh low at $5.61 1/2 scored late in the session Friday, with the lower Bollinger Band just below that at $5.60 and the 20-day moving average above the market at $6.05. SOYBEANS: Soybean futures are 26 to 36 cents higher at midday with the August contract gaining sharply versus the back month as it heads towards delivery at the end of the week with focus on the August forecasts as well. Meal is $9.00 to $10.00 higher and oil is 160 to 170 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 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 quiet. On the September soybean chart, support is the low at $13.04 1/2 with the lower Bollinger Band at $12.93 and the 20-day moving average at $13.83, now well below the market, with the Upper Bollinger band at $14.74, well above the market. WHEAT: Wheat futures are 3 to 13 cents lower at midday with trade seeing double-digit moves in both directions with Chicago action leading as trade waits on Black Sea shipping action, along with spread unwinding, while euro values edge higher. Plains weather should allow for harvest to push to mostly wrap up, with planting moisture soon become a concern for the Southern Plains with some relief this weekend and early this week, while spring wheat sees heat next week. The dollar looks to chop just below the longer-term highs and short-term export business will be watched with China and Pakistan actively sourcing euro cargos with questions about how much Ukraine wheat will show up short term with Russian harvest expanding. The KC September chart has support at the fresh low at $8.14 1/2 with the lower Bollinger Band at $7.89 and the 20-day moving average just above the market at $8.81, which we faded from a test of Wednesday morning. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.