DTN Midday Grain Comments 08/10 10:57

DTN Midday Grain Comments 08/10 10:57 Corn, Soybean, Wheat Futures All Higher at Midday Corn futures are 8 to 11 cents higher at midday Wednesday; soybean futures are 22 to 37 cents higher; wheat futures are 14 to 17 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 8 to 11 cents higher at midday Wednesday; soybean futures are 22 to 37 cents higher; wheat futures are 14 to 17 cents higher. The U.S. stock market is sharply higher with the DOW up 540 points. The U.S. Dollar Index is 155 points lower. Interest rate products are mixed. Energies are mixed with crude down 1.00. Livestock trade is firmer. Precious metals are firmer with gold $2.00 higher. CORN: Corn futures are 8 to 11 cents higher at midday with buying continuing and firm spread trade as the we work to balance weather and demand ahead of Friday's WASDE report along without outside market support Wednesday. Short-term forecasts show drier weather for most with warmer-than-normal temperatures for the center and western parts of the Corn Belt. Moderations is expected the second week along with some spotty showers in the west. Ethanol margins will continue to be limited by driving demand and seasonal slowdowns with unleaded futures just off six-months lows to crimp blending margins if sustained. Weekly ethanol production was down 21,000 barrels per day (bpd) with stocks down 138,000 barrels. Basis will be watched to see how much further strength fades, especially with the board rally and harvest starts in the South. On the WASDE report, yield is expected to come in at 175.9 bushels per acres (bpa) with trade looking for demand cuts to balance the yield decrease. 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. Trade is holding back above the 20-day moving average at $5.99 and the upper Bollinger Band is the next round up at $6.29, which we remain a touch below. SOYBEANS: Soybean futures are 22 to 37 cents higher at midday with strong spread action continuing with September at recent highs, while November struggles to push back to the $14.50 area, holding just above at midday. Meal is $14.00 to $15.00 higher and oil is 120 to 130 points higher. For the WASDE report Friday, trade is looking for an average yield of 51.1 bpa, down just slightly from July. 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. The bulk of the U.S. is heading into the start of pod-fill season with warmer and drier weather for much of the belt this week before moderating the next with mixed rain potential. Basis is fading a bit at processors and exporters in recent days as early harvest in the south draws closer with China securing another 196,000 metric tons (mt) of new crop on the daily export wire. On the September soybean chart, support is the 20-day moving average at $14.14, which we are well above, with the Upper Bollinger Band at $15.32, which we are above at midday. WHEAT: Wheat futures are 14 to 17 cents higher at midday with trade pushing into resistance yet again with support from row crops and harvest pressure easing further along with the dollar backing away from the highs. Plains weather looks warmer and drier this week with moisture needing to be built before planting time, while spring wheat sees heat with harvest hitting full stride short term. The dollar is fading further from the recent highs as the pace of inflation showed easing Wednesday morning along with Black Sea potential still being watched as Romania estimated production off 18% on the year. The KC September chart has resistance at the 20-day moving average above the market at $8.57, which we are above again at midday, but we have failed to hold on , recent tests; the Lower Bollinger band at $8.23 is 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.