DTN Midday Grain Comments 08/03 10:55

DTN Midday Grain Comments 08/03 10:55 Corn, Soybean, Wheat Futures Lower at Midday Corn futures are 1 to 2 cents lower at midday Wednesday; soybean futures are 11 to 13 cents lower; wheat futures are 3 to 12 cents lower. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 1 to 2 cents lower at midday Wednesday; soybean futures are 11 to 13 cents lower; wheat futures are 3 to 12 cents lower. The U.S. stock market is firmer with the DOW up 325 points. The U.S. Dollar Index is 45 points higher. Interest rate products are weaker. Energies are mostly lower with crude down 2.00. Livestock trade is firmer. Precious metals are weaker with gold $14.70 lower. CORN: Corn futures are 1 to 2 cents lower at midday with two-sided action so far with trade unable to shake off weaker soybeans and wheat spillover with little other fresh news. Short-term forecasts show plentiful heat for the Western Corn Belt along with limited precipitation, while better coverage looks in place for the Eastern Corn Belt with some back and forth in the forecast continuing as more yield estimates are published with most just under the USDA July numbers for now. The daily export wire has remained limited with the strong dollar and better South American competition short term. Ethanol margins will continue to be limited by driving demand with maintenance season to slow production. Weekly production and stocks edged slightly higher to 22,000 barrels per day (bpd) and stocks are up 66,000 barrels. Basis will be watched to see how much further strength fades, especially with the board rally and harvest starting in the South. On the September chart, support is the fresh low at $5.61 1/2 scored two weeks ago with the lower Bollinger Band just below that at $5.60, with trade below the 20-day moving average at $6.01 after fading Tuesday and the upper Bollinger Band the next round up at $6.35. SOYBEANS: Soybean futures are 11 to 13 cents lower at midday with early gains fading again as soy oil lost momentum and weather forecasts remain mixed. Meal is $4.00 to $5.00 lower, and oil is 20 to 30 points lower. Biodiesel margins remain positive but are narrowing in recent days. South America is on post-harvest footing for shipping with their advantage to persist until September. The bulk of the U.S. is heading into the start of pod-fill season with heat and scattered rains short term before bigger rains expected to the east this weekend. Basis is fading a bit at processors and exporters in recent days with the daily export wire quiet to start the week, except for some soy cake and meal sold to Poland and reported Wednesday. On the September soybean chart, support is the 20-day moving average at $13.91, which we came close to testing, with the Upper Bollinger Band at $14.76 as the next round up. WHEAT: Wheat futures are 3 to 12 cents lower with spring wheat leading as early gains evaporated. Row crops turned weaker and winter wheat headed back to the low end of the range while euro values hold together a bit better. Plains weather looks warmer and drier this week with moisture needing to be built before planting time with harvest wrapped up except for the north growing areas; spring wheat sees heat with harvest just around the corner. The dollar remains in the upper end of the range but has been trending weaker overall with trade watching to see if the recent export booking pace can be sustained. The KC September chart has resistance at the 20-day moving average, well above the market at $8.68, with the Lower Bollinger band at $8.15, the next round down. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.