DTN Midday Grain Comments 07/28 10:53

DTN Midday Grain Comments 07/28 10:53 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 13 to 14 cents higher at midday Thursday; soybean futures are 22 to 27 cents higher; wheat futures are 9 to 17 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 13 to 14 cents higher at midday Thursday; soybean futures are 22 to 27 cents higher; wheat futures are 9 to 17 cents higher. The U.S. stock market is firmer with the DOW up 165 points. The U.S. Dollar Index is 10 points higher. Interest rate products are mostly firmer. Energies are mixed with crude up .40. Livestock trade is mostly lower. Precious metals are mixed with gold $30.00 higher. CORN: Corn futures are 13 to 14 cents higher at midday with trade finding solid buying overnight after lagging Wednesday as trade works to push through nearby resistance and consolidates back above $6.00 with further spillover from soybean trade. 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. Weekly export sales remain soft at 150,300 metric tons (mt) of old crop and 193,700 mt of new. Ethanol margins will continue to be limited by driving demand with maintenance season to slow production. Basis will be watched to see if strength holds with spread action flat so far Thursday 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, with trade pushing past the 20-day moving average at $6.02 overnight and the upper Bollinger Band the next round up at $6.38. SOYBEANS: Soybean futures are 22 to 27 cents higher at midday with back months gaining on August as it heads toward delivery. Trade is fading from the day highs as the forecast continues to look threatening the second week for much of the belt with volatility expected to continue. Meal was $5.00 to $6.00 lower and oil is 350 to 360 points higher. Biodiesel margins remain positive with flatter action in recent days. South America is on post-harvest footing for shipping with their advantage to persist until September, while the bulk of the U.S. is 1 to 3 weeks from the key reproductive time frame. Basis is fading a bit at processors and exporters in recent days with the daily export wire quiet. Weekly export sales were a mixed bag with -58,600 mt of old crop; 748,800 mo of new crop; 28,000 of old meal; 20,600 of new; 4,600 of old oil; and 600 of new. On the September soybean chart, support is the low at $13.04 1/2 with the lower Bollinger Band at $12.93 with the 20-day moving average at $13.83, now well below the market, with the upper Bollinger band at $14.61, well above the market. WHEAT: Wheat futures are 9 to 17 cents higher at midday, reversing the Wednesday losses so far with support from European values and row crops as trade works to push back through nearby resistance. Plains weather should allow for harvest to push to mostly wrap up, with planting moisture soon become a concern for the Southern Plains, seeing relief this week before heat looks to return, while spring wheat sees heat next week as the crop plays catch-up. The dollar remains in the upper end of the range with erratic post Fed statement action, 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 into August. Weekly export sales were OK at 412,000 mt. 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 $8.75, which we are testing this morning. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.