DTN Midday Grain Comments 07/29 10:56

DTN Midday Grain Comments 07/29 10:56 Corn, Soybean Futures Higher at Midday; Wheat Flat-Lower Corn futures are 9 to 11 cents higher at midday Friday; soybean futures are 34 to 44 cents higher; wheat futures are flat to 7 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 9 to 11 cents higher at midday Friday; soybean futures are 34 to 44 cents higher; wheat futures are flat to 7 cents lower. The U.S. stock market is firmer with the DOW up 50 points. The U.S. Dollar Index is 30 points lower. Interest rate products are mostly firmer. Energies are sharply firmer with crude up 4.90. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold $11.60 higher. CORN: Corn futures are 9 to 11 cents higher at midday following soybeans higher. Spread action is flat as it consolidates further over the $6.00 area, heading toward the weekend with late profit-taking likely going into the month's end and week's end. Short-term forecasts are cooler with rains to the south the next couple of days before hotter and drier weather is expected to return. The daily export wire has remained limited with the strong dollar and better South American competition. The dollar is still hanging near the highs with softer action during the day session. Ethanol margins will continue to be limited by driving demand with maintenance season to slow production. Basis will be watched to see how much further strength fades, especially with the board rally. 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 trade pushing past the 20-day moving average at $6.02 Thursday and the upper Bollinger Band the next round up at $6.38. SOYBEANS: Soybean futures are 34 to 44 cents higher at midday with spreads firming as the August contract goes into delivery and trade continues to watch for the forecast heat and dryness into mid-month. Meal was $12.00 to $13.00 higher, and oil is 200 to 220 points higher. Biodiesel margins remain positive but narrowing a bit with the rally. South America is on post-harvest footing for shipping with their advantage to persist until September, while the bulk of the U.S. is one to three weeks from the key reproductive time frame, along with heat potentially moving harvest forward. Basis is fading a bit at processors and exporters in recent days with the daily export wire showing some action Friday with 123,000 metric tons (mt) sold to unknown for new crop. On the September soybean chart support is the low at $13.04 1/2 with lower Bollinger Band at $12.93 with the 20-day moving average at $13.83, now well below the market. The upper Bollinger band at $14.69 was passed overnight with $15.00 the next round up, which we are just below at midday. WHEAT: Wheat futures are flat to 7 cents lower with profit-taking versus fresh longs showing up as trade braces for the weekend and month end, along with potential political developments in shipping, along with corn strength moderating. Plains weather should allow for harvest to push to mostly wrap up, with planting moisture soon to 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 but has been trending weaker, 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 as the first ships are expected to sail soon with Russian harvest expanding into August. The KC September chart has support at the 20-day moving average just below the market at $8.73, which we moved past Thursday, with the upper Bollinger band at $9.32 the next round up. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.