DTN Midday Grain Comments 08/04 10:53

DTN Midday Grain Comments 08/04 10:53 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 9 to 10 cents higher at midday Thursday; soybean futures are 41 to 52 cents higher; wheat futures are 20 to 25 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 9 to 10 cents higher at midday Thursday; soybean futures are 41 to 52 cents higher; wheat futures are 20 to 25 cents higher. The U.S. stock market is weaker with the DOW down 90 points. The U.S. Dollar Index is 60 points lower. Interest rate products are firmer. Energies are weaker with crude down 2.10. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold $30.00 higher. CORN: Corn futures are 9 to 10 cents higher at midday with two-sided action giving way to broad buying with spillover support from soybeans and wheat with little other fresh news. Short-term forecasts show plentiful heat for the Western Corn Belt along with mixed precipitation this weekend, while better coverage looks in place for the Eastern Corn Belt with some back and forth in the forecast as we head into mid-August. The export wire has remained limited with the strong dollar and better South American competition short term. Weekly export sales remained soft at 57,900 metric tons (mt) of old-crop corn and 256,700 mt of new. Ethanol margins will continue to be limited by driving demand and seasonal slowdowns. Basis will be watched to see how much further strength fades, especially with the board rally and harvest starts in the South. On the September chart, support is the fresh low at $5.61 1/2 scored two weeks ago with lower Bollinger Band just below that at $5.60, with trade moving back above the 20-day moving average at $6.00 after fading through it Tuesday and the upper Bollinger Band is the next round up at $6.34. SOYBEANS: Soybean futures are 41 to 52 cents higher at midday with September action leading in firm spread trade with early weakness giving way to buying as outside market influences calm down and the forecast remains mixed. Meal is $18.00 to $19.00 higher and oil is 15 to 25 points higher. Biodiesel margins remain positive but narrowing 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 heading into the start of pod-fill season with heat and scattered rains short term before bigger rains expected in the east and north-central areas this weekend. Basis is fading a bit at processors and exporters in recent days with the export wire quiet again today. Weekly export sales were in line with recent weeks at -11,000 mt of old crop; 410,600 mt of new; 186,600 of old meal; 48,800 of new meal; and 1,300 of oil. On the September soybean chart support is the 20-day moving average at $13.92, which we bounced off, with the Upper Bollinger Band at $14.76 as the next round up. WHEAT: Wheat futures are 20 to 25 cents higher at midday with spring wheat leading as trade works to build on the late-session strength of Wednesday with mostly higher action through the overnight session before finding wider buying at mid-morning, along with euro values firming a bit. 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, while spring wheat sees heat with harvest just around the corner with potential rains to slow the start if confirmed. 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 with export sales a bit softer at 249,900 mt. The KC September chart has resistance at the 20-day moving average just above the market at $8.65, with the lower Bollinger band at $8.09 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.