DTN Midday Grain Comments 08/22 10:53

DTN Midday Grain Comments 08/22 10:53 Corn, Soybean, Wheat Futures Higher at Midday Corn futures are 2 to 4 cents higher at midday Monday; soybean futures are 21 to 34 cents higher; wheat futures are 15 to 22 cents higher. David M. Fiala DTN Contributing Analyst MARKET SUMMARY: Corn futures are 2 to 4 cents higher at midday Monday; soybean futures are 21 to 34 cents higher; wheat futures are 15 to 22 cents higher. The U.S. stock market is weaker with the DOW down 450 points. The U.S. Dollar Index is 70 points higher. Interest rate products are weaker. Energies are mixed with crude down 2.30. Livestock trade is mostly lower. Precious metals are weaker with gold $13.00 lower. CORN: Corn futures are 2 to 4 cents higher with trade working to consolidate the end-of-week rebound as attention turns to the crop tour this week and outside market direction with active two-sided action so far. Short-term forecasts have the center of the Corn Belt drier with milder temperatures short term as we head toward the homestretch. Weekly export inspections were rangebound at 740,508 metric tons (mt). Ethanol margins will continue to be limited by driving demand and seasonal slowdowns with unleaded futures fading again to keep blender margins flat while natural gas remains near the highs, hurting some plant margins. Basis will be watched to see how much further strength fades, especially with the board rally and harvest starts in the South with mixed to lower yields and aflatoxin concerns so far. USDA's weekly Crop Progress Report is expected to show mostly steady conditions with maturity mixed as some areas have been pushed along while others remain slow. On the September chart, support is the 20-day moving average at $6.08 and the upper Bollinger Band is the next round up at $6.38. SOYBEANS: Soybean futures are 21 to 35 cents higher at midday with firmer spread action as September presses through the $15.00 area with concerns about finishing weather for the central and western parts of the belt, while meal leads crush margins this morning. Meal is $12.00 to $13.00 higher and oil is 30 to 40 points higher. This week's crop tour will include soybean pods counts. South America is on post-harvest footing for shipping with their advantage to persist until September. Weekly export inspections remained solid at 686,583 mt. Weekly crop progress is expected to show steady conditions and maturity still mostly lagging. Basis has been more mixed as we head toward harvest with end users ready for new crop. On the September soybean chart, support is the 20-day moving average at $14.69, which we remain above, while November is back above the 20-day moving average at $14.12, with the Upper Bollinger Band at $15.46, which we have faded from as resistance. WHEAT: Wheat futures are 15 to 22 cents higher at midday with KC again taking the lead as two-sided action gives way to trade looking to extend Friday's rebound from fresh lows as the stronger dollar adds headwinds, along with continued export uncertainty worldwide. Plains weather more mixed for short-term moisture with deficits needing to be eased ahead of planting for Oklahoma and Texas with rains shifting further south, while spring wheat harvest should continue to roll along with the weekly crop progress report likely to show progress near the halfway point. Weekly export inspections improved at 594,273 mt. The dollar is back to the highs on interest rate outlooks turning more hawkish in recent days. The KC September chart has resistance at the 20-day moving average at $8.61, which we broke below Wednesday, and are testing at midday, with the fresh lows at $8.07 scored Thursday as support. David Fiala can be reached at [email protected] Follow him on Twitter @davidfiala (c) Copyright 2022 DTN, LLC. All rights reserved.